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Serhud [2]
2 years ago
13

Evaluate an open economy from the spending approach in order to get the three sectorial balances, private, external, and public.

Business
1 answer:
velikii [3]2 years ago
5 0

Answer:

GDP for an open economy from the spending approach follows this equation:

GDP = Consumption + Investment + Government Spending + Net Exports (Exports - Imports)

It can also be written as:

GDP = C + I + G + NX (X - N)

The balance of private consumption is simply equal to C, the balance of public spending is G, and the balance of the external sector is net exports or NX.

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In the United States banking policies and procedures are set by the:
vfiekz [6]

Answer:

Federal Reserve.

Explanation:

Federal Reserve is a large central bank in Washington, D.C. that was founded in 1913. It lends money to other, smaller banks.

6 0
3 years ago
When firms purchase new capital we call this _____
tatuchka [14]

Answer:

Business fixed investment

Explanation:

The <u><em>purchase by firms of new capital goods</em></u> such as machinery, factories, and office buildings. (Remember that for the purposes of calculating GDP, long-lived capital goods are treated as final goods rather than as intermediate goods.) Firms buy capital goods to increase their capacity to produce.

6 0
3 years ago
Read 2 more answers
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
forsale [732]

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.

6 0
3 years ago
High-Rise Boots Corp. plans to expand into the European market where it finds weak pressure to respond to local demands and cost
Alekssandra [29.7K]

Answer: Home replication strategy

Explanation:

The competitive strategy should the company use based on these factors is the home replication strategy. In this strategy, there is a minimal need for flexibility or modifications.

Since the company finds weak pressure to respond to local demands and cost reductions are not necessary, then the home replication strategy is applicable.

7 0
3 years ago
Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happe
Alexxandr [17]

Answer:

It would fall

Explanation:

The unemployment rate measures the amount of people who are out of a job for at least 4 weeks, and are actively seeking to find a new job. If a person is not willing or able to search for a job, he/she is not considered unemployed nor part of the labor force.

If unemployed people just quit looking for jobs, the unemployment will decrease even though the number of people who are out a job increases. This happens because as soon as someone quits looking for new job, they are not considered unemployed anymore.

6 0
3 years ago
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