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Wewaii [24]
2 years ago
5

If equilibrium GDP is $250 billion less than the targeted level of GDP, and the Multiplier Model has an mpe of 0.75, then we can

predict that the targeted level of GDP can be attained by_______ government spending______billion.
a. decreasing; $62.5
b. increasing; $95.5
c. increasing; $62.5
d. increasing; $250
Business
1 answer:
Olegator [25]2 years ago
3 0

Answer:

c. increasing; $62.5

Explanation:

The computation is shown below;

As we know that

Multiplier = 1 ÷ 1 - MPC

= 1 ÷ 1 - 0.75

= 1 ÷ 0.25

= 4

Now if the equilibrium GDP is $250 billion less than the expected level of GDP

So, the government spending would be increased by

= $250 billion ÷ 4

= $62.5

Hence, the correct option is c.

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Photon
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3 years ago
The main elements of market structure are _____. perfect competition, monopolistic competition, monopoly, and oligopoly perfect
Bess [88]

Answer:

First one:

perfect competition, monopolistic competition, monopoly, and oligopoly

Explanation:

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6 0
2 years ago
HD had reported a deferred tax asset of $130 million with no valuation allowance. At December 31, 2021, the account balances of
oksano4ka [1.4K]

Answer:

$101 million income tax expense

Explanation:

The income tax of HD can be computed by beginning with income tax payable less the increase in deferred tax asset in the year and finally by deducting the portion of current deferred tax asset that cannot be realized as shown below:

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The HD income tax expense in income statement in 2021 is $101 million as computed due to the fact that prior payment in tax ha been paid in the year

7 0
3 years ago
Given the following production function for Tight Jeans Corporation, calculate the marginal physical product and the value of th
kicyunya [14]

Answer:

labor input      pairs of jeans      marginal physical     value of marginal

                       per day                product                     physical product

0                          0                          0                               0

1                         10                         10                            $300

2                         36                         26                            $780

3                         56                         20                            $600

4                         68                         12                            $360

5                         74                          6                            $180

6                         76                          2                             $60

7                         76                          0                                0

8                         74                         -2                            -$60

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5 0
3 years ago
One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and
hichkok12 [17]

GATT  is a very common term in business. One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and Trade.

<h3>What is the meaning of GATT?</h3>

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They are involved in Trade negotiations. The WTO is regarded as the successor to the General Agreement on Tariffs and Trade (GATT) set up after the Second World War.

Learn more about GATT from

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5 0
1 year ago
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