Answer:
The correct option is B
Explanation:
The long run supply curve is a curve which is vertical at the output level which is potential. The potential level of the output is produced by using all the resources which are available in the economy.
And it changes when the labor resource, change in technology or the capital changes. So, decrease in the labor force decreases the labor resources and with that the potential level of output in the economy decreases.
Answer:
Option (b) is correct.
Explanation:
Given that,
Net income = $96,200
Depreciation expense = $6,300
Increase in net working capital = $2,800
Net cash from operating activity:
= Net income + Depreciation expense - Increase in net working capital
= $96,200 + $6,300 - $2,800
= $99,700
Therefore, the amount of the net cash from operating activity is $99,700.
Here are the items that would describe <span>the results of scarcity:
-</span><span>There are not enough goods and services to meet everyone's wants.
-</span><span>Using resources today means having fewer of them in the future.
Scarcity means being in short supply or shortage. Hope this answers your question. </span>
Answer:
c. The recessionary gap is equal to 1 billion yen divided by 2.5 or 0.4 billion yen.
Explanation:
The computation is shown below:
The multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.60)
= 2.5
Now the increase in government expenditure for closing out the recessionary gap should be
Change in income = change in government purchase × multiplier
100 = change in government purchase × 2.5
So, the change in government purchase should be
= 100 ÷2.5
= 40
Hence, the option c is correct
Answer:
Gross Income:
= Earned wages + Interest from savings + Interest on home mortgage
= 93,260 + 1,340 + 4,500
= $99,100
Adjusted gross income:
= Gross income - Tax deferred plan - State taxes
= 99,100 - 6,300 - 1,359
= $91,441
Taxable income
= Adjusted gross income - Personal exemption - Standard deduction - Charity contribution
= 91,441 - 3,500 - 7,800 - 2,500
= $77,641