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 standard price per yard is $6.25
Explanation:
The computation of the standard price per yard is shown below;
Material quantity variance = Standard Price × (Actual quantity - Standard quantity)
-$5,000 = Standard price × (10,000 - 10,800)
Thereore Standard price = -$5,000 ÷ (-800)
= $6.25
Hence, the standard price per yard is $6.25
We simply applied the above formula so that the standard price per yield could come
The right answer for the question that is being asked and shown above is that: • • Mega Mart is a “dog.” A business unit is considered a dog is when the market growth rate is low and the relative market share is also low.
Business unit that has grown very slowly.
They have a very low share.<span>
</span>
Answer:
<em>HELLO</em><em> </em><em>CAN</em><em> </em><em>U</em><em> </em><em>TELL</em><em> </em><em>ME</em><em> </em><em>HOW</em><em> </em><em>TO</em><em> </em><em>SEE</em><em> </em><em>LEADERBOARD</em><em> </em><em>HERE</em><em> </em>
<em>I</em><em>N</em><em> </em><em>AUSTRALIA</em><em> </em><em> </em>
<em>I</em><em> </em><em>AM</em><em> </em><em>FROM</em><em> </em><em>INDIA</em><em> </em><em>AND</em><em> </em><em>I</em><em> </em><em>M</em><em> </em><em>HERE</em><em> </em><em>TO</em><em> </em><em>EXPLORE</em><em> </em><em>THE</em><em> </em><em>ASTUTRALIAN</em><em> </em><em>BRAINLY</em><em> </em>
<em>PLEASE</em><em> </em><em>HELP</em>
Answer:Yes, the Manager made an error.
Explanation:
Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.
However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.
E.g
Year. $ Price. Demand. Revenue$
1. 5. 100. 500
2. 6. 80. 480
The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.
