The face value per share.
Countries gain from exchange when trade enables each country to receive a higher price for exported goods and/or pay a lower price for imported goods. This leads to more efficient resource allocation and allows consumption of a larger variety of goods.International trade is where there is exchange of goods and services across International territories where in most countries this exchange represents a significant a share of gross domestic product(GDP). One of the most immediate benefits of this trade is lower costs to consumers
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Answer:
Australia - <em>Shift Australia's production function upward, create a movement up along the production function as the full-employment quantity of labor increases, and increase potential GDP</em>
United States - <em>Will not change potential GDP as production happens in Australia</em>
Explanation:
Australia's production potential will rise which will be depicted by a shift upwards in the Production Possibilities Frontier (PPF) thereby leading to an increase in the full employment quality of labor and potential GDP for Australia.
As the production is happening in Australia, it will not affect potential GDP in the US.
Answer:
If GDP and consumption both rise by $6 billion in the second round of the process, what is the MPC in this economy?
What is the size of the multiplier?
If, instead, GDP and consumption both rose by $8 billion in the second round, what would have been the size of the multiplier?
Explanation:
Since the change in consumption is $6 billion, and the initial expansion in investment was $10 billion, the marginal propensity to consume (MPC) = expansion in consumption / initial expansion = $6 / $10 = 0.6
the economy's multiplier = 1 / (1 - MPC) = 1 / (1 - 0.6) = 1 / 0.4 = 2.5
If both the economy and the GPD had expanded by $8 billion, the MPC = $8 / $10 = 0.8, so the economy's multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5
Another way to determine the multiplier = 1 / MPS (marginal propensity to save), since MPS = 1 - MPC
For the market to reach equilibrium, you would expect prices to rise.
<h3>What is a shortage?</h3>
A shortage exists when quantity demanded exceeds quantity supplied. This is because price is below equilibrium price. Equilibrium price is the price at which quantity demanded is equal to quantity supplied.
For a shortage to be resolved, prices would rise until equilibrium price is reached.
To learn more about equilibrium, please check: brainly.com/question/26075805
