Explanation:
a. The computation is shown below:
As we know that
Multiplier = 1 ÷ 1 - MPC
1.5 = 1 ÷ 1 - MPC
So, MPC is 0.3333
Now the real GDP is
= Multiplier × Government spending
= 0.3333 × $70 billion
= $105 million
So the change in real GDP is
= $105 million - $70 million
= $35 million
b. The computation is shown below:
As we know that
Multiplier = 1 ÷ 1 - MPC
Multiplier = 1 ÷ 1 - 0.6
So, multiplier is 2.5
Now the real GDP is
= Multiplier × Government spending
= 2.5 × $16 billion
= -$40 million
c. As we know that
Real GDP = Multiplier × Government spending
$280 billion = Multiplier × $70 billion
So, the multiplier is 4
Now the MPC is
Multiplier = 1 ÷ 1 - MPC
4 = 1 ÷ 1 - MPC
So, the multiplier is 0.75
Answer:
2nd place
Explanation:
I feel like this is the right answer, I'm just guessing.
Answer:
Option (b) : I, II, III, and IV
Explanation:
As per the data given in the question,
In order to evaluate weather a product is sold at a split-off point or can be further processed, the joint processing costs that have already been obtained will have no effect on the decision because the costs and revenues that will be acquired and obtained after consideration will have to be decided whether to continue processing or not. The sunken cost is the cost of processing jointly. Therefore it will not affect the decision to process further or not.
Hence, Option (b) : I, II, III, and IV is correct answer
Explanation:
The company acquired a machine on January 1 at an original cost of $ 81,000. The machine’s estimated residual value is $ 15,000, and its estimated life is 20,000 service hours. The actual usage of the machine was as follows:
Year 1 9,000 hours
Year 2 5,000 hours
Year 3 4,000 hours
Year 4 2,000 hours
