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igomit [66]
3 years ago
8

Suppose the economy is experiencing an output gap of –3%. a. Select each response that indicates how monetary policy or fiscal p

olicy can be used to raise actual output toward potential output. The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP. The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP. Firms can increase production, which will shift the IS curve to the right and increase GDP. The Fed can increase the interest rate, which will shift the MP curve up and reduce GDP. The government can increase taxes, which will shift the IS curve to the left and reduce GDP. b. The policies you identified in part a if used together, will cancel each other out, and the economy will remain in output gap of -3%. cannot be used together because each moves the economy in a different direction. can be used together to raise actual output toward potential output.
Business
1 answer:
igor_vitrenko [27]3 years ago
7 0

Answer:

Suppose the economy is experiencing an output gap of –3%

a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:

The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.

The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.

b. The policies identified in part a,

can be used together to raise actual output toward potential output.

Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S).  This equilibrium can be achieved at a level of interest rate that maximizes output.  The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

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The price of ______ goods is a determinant of demand.
ryzh [129]

Generally, the price of <u>other goods</u> is an important determinant of demand for a product.

<h3>What are the determinants of demand? </h3>

The determining factor for demand level of a product includes changes in income, prices of related goods, consumer expectations, consumer tastes etc.

Therefore, the price of <u>other goods</u> is an important determinant of demand for a product.

Read more about determinants of demand

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6 0
1 year ago
Who do you think has the least<br> influence? Why?
tatuchka [14]

Answer:

good stuff

Explanation:

people these days (including me sometimes) put more energy into bad things and negative things .and its partly social media's fault.

3 0
2 years ago
The supply curve represents​ ___________. A. the maximum price buyers are willing to pay to buy an extra unit of a good. B. the
matrenka [14]

Answer:

The answer is: C) The minimum price sellers are willing to accept to sell an extra unit of a good.

Explanation:

A normal supply curve should move upward from left to right. The expresses the Law of Supply: (given that all other factors remain without change) As the price of a product increases, the quantity supplied should also increase.

For example:

An ounce of gold costs right now $1,500 and 100 ounces of gold are being traded right now at that price. If a new buyer comes in and wants to buy the 101th ounce of gold, then following a normal supply curve, the new buyer would need to pay more for that extra ounce of gold, maybe $1,510.

What the supply curve shows us is that given a certain price Y, a company will be willing to sell X amount of goods.  The more demand a product has (X + 1) > X, then the price Y will increase until a new balance is found.

8 0
3 years ago
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operat
Sidana [21]

Answer: SEE EXPLANATION

A. 198.27 UNITS

B. 99.14 UNITS

C. 30.76 ORDERS

D. 8.12 DAYS

E. $1,784.43

Explanation:

Given the following ;

Annual order = 6,100

Carrying cost = $9 per unit per year

Ordering cost = $29

A) EOQ =sqrt[( 2 × Annual order × (ordering cost ÷ carrying cost)]

EOQ = sqrt[2 ×6100 × (29÷9)]

EOQ = sqrt(12200 × 3.22222222)

EOQ = 198.27 units

B.) AVERAGE INVENTORY :

EOQ ÷ 2

198.27 ÷ 2 = 99.14 UNITS

C.) Optimal number of orders per year:

Demand / order per year

6,100 ÷ 198.27 = 30.76 orders

D.) Optimal number of days between two orders:

Number of working days ÷ optimal number of orders

250 ÷ 30.76 = 8.12 days.

E.) Annual cost of ordering and holding inventory:

$198.27 × $9 = $1,784.43

8 0
3 years ago
Cash Acme Company Balance Sheet As of January 5, 2021 (amounts in thousands) 13,700 Accounts Payable 3,200 Debt 5,100 Other Liab
IgorC [24]

Answer:

Acme Company

1. Acme Company

Balance Sheet

As of January 6, 2021 (amounts in thousands)

Cash                                         13,819

Accounts Receivable                3,188

Inventory                                  5,100

Property Plant & Equipment 15,445

Other Assets                             800

Total Assets                         38,352  

Liabilities and Equity:

Accounts Payable                 2,000

Bank Payable                             67

Debt                                      3,600

Other Liabilities                      900

Total Liabilities                    6,567

Equity:

Paid-In Capital                     7,285

Retained Earnings            24,500

Total Equity                        31,785

Total Liabilities & Equity  38,352

2. The final amount in Accounts Payable remains $2,000,000, but the Bank Payable increased from zero to $67,000.

Explanation:

a) Data and Calculations:

Acme Company

Balance Sheet

As of January 5, 2021 (amounts in thousands)

Cash                                        13,700

Accounts Receivable              3,200

Inventory                                  5,100

Property Plant & Equipment 15,400

Other Assets                             800

Total Assets                         38,200  

Liabilities and Equity:

Accounts Payable                 2,000

Debt                                      3,600

Other Liabilities                      900

Total Liabilities                    6,500

Equity:

Paid-In Capital                     7,200

Retained Earnings            24,500

Total Equity                        31,700

Total Liabilities & Equity  38,200

Transaction Analysis:

1. Cash $12 Accounts receivable $12

2. Equipment $45 Cash $45

3. Cash $85 Paid-in Capital $85

4. Cash $67 Bank payable $67

Cash

Beginning balance    13,700

Accounts receivable        12

2. Equipment                 (45)

3. Paid-in Capital            85

4. Bank payable             67

Ending balance        13,819

4 0
3 years ago
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