Answer: The recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen
Explanation:
From the question, we are informed that GDP gap of 1 trillion yen and the marginal propensity to consume (MPC) is 0.60. Also, to close the GDP gap, the prime minister has decided to increase government spending. This means that there will be a recessionary gap because the actual GDP will be less than the potential GDP.
Fir the economy to be brought to its potential GDP, the spending of the government will give a stimulus to the economy. Since MPC is 0.6, the multiplier will be:
= 1/1-MPC
= 1/1 - 0.6
= 1/0.4
= 2.5
The government spending will then increase in order to close the recessionary gap as:
∆Y = ∆G × Multiplier
100 = ∆G × 2.5
∆G = 100/2.5
∆G = 40
Therefore, the recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen.
Answer:
The correct answer is letter "D": must be long-lived and used by the company in its normal operations.
Explanation:
Fixed assets are tangible resources used by a corporation to produce profits. To qualify as a fixed asset, the item can not be consumed or sold in less than one year and be part of the daily operations of the business. Fixed assets are listed on the balance sheet of the company and are subject to depreciation.
Examples of fixed assets include <em>buildings, factories, leasehold improvements, computers, electronic hardware, furniture, automobiles, </em>and <em>construction equipment.</em>
<span>The herfindahl-hirschman index is the measure of the percentage market share of each firm summed over the largest 50 firms in a market.
HHI is the measure of market concentration. It is the commonly accepted measure. if H</span>erfindahl-Hirschman index is low and its four firm concentration ratio is low then the market is considered competitive.
Answer:
Political-legal Environment.
Explanation:
The political-legal environment component of the marketing environment consists of laws that require firms to operate under competitive conditions and to protect consumer rights. This component particularly has an impact on the marketing function of organizations. Laws made by the government of any country come into play here. Marketing department along side overall organization has to abide by these laws and rules. This factor/element basically decides the direction of the overall business as well. For example, when Chinese Government made a law that one family can have only one child, which was categorized as six-pocket syndrome. Business dealing with the kids related products were very successful and profitable those days, many organization also started making items for the kids those days.
