Which economic system has no formal government

In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and red

Tems11 [23]

Answer:

(B) $20 billion

Explanation:

Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.

$ΔAD = \frac{ΔG}{1 - MPC}$

where Δ means <em>change.</em>

<em />

Therefore, given ΔAD of $50 billion, and MPC of 0.6,

$ΔAD = \frac{ΔG}{1 - MPC}$

= $50 = \frac{ΔG}{1 - 0.6}$

= $50 = \frac{ΔG}{0.4}$

= ΔG = 50 * 0.4 = 20

Therefore, increase in government purchases = $20 billion.

3 0

3 years ago

Culver Company has budgeted the following unit sales: 2022 2023 Quarter Units Quarter Units 1 108,000 1 94,000 2 63,000 3 73,000

kakasveta [241]

Answer:

Culver Company

Production Budget for 2022:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Unit sales 108,000 63,000 73,000 118,000 362,000

Ending inventory 12,600 14,600 23,600 18,800 18,800

Total units available 120,600 77,600 96,600 136,800 380,800

Beginning inventory 21,600 12,600 14,600 23,600 21,600

Production units 99,000 65,000 82,000 113,200 359,200

Explanation:

a) Data and Calculations:

2022 2023

Quarter Units Quarter Units

1 108,000 1 94,000

2 63,000

3 73,000

4 118,000

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1

Unit sales 108,000 63,000 73,000 118,000 94,000

Beginning inventory 21,600 12,600 14,600 23,600 18,800

Ending inventory 12,600 14,600 23,600 18,800

Production Budget for 2022:

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Unit sales 108,000 63,000 73,000 118,000 362,000

Ending inventory 12,600 14,600 23,600 18,800 18,800

Total units available 120,600 77,600 96,600 136,800 380,800

Beginning inventory 21,600 12,600 14,600 23,600 21,600

Production units 99,000 65,000 82,000 113,200 359,200

6 0

3 years ago

A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capita

Alex17521 [72]

Answer:

True

Explanation:

A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary.

7 0

2 years ago

Butler corporation is considering the purchase of new equipment costing $30,000. the projected annual after-tax net income from

yKpoI14uk [10]

Net annual cash flows
1,200+10,000=11,200

Net present value is
PV of annual cash flows-project investment
11,200×2.4018−30,000=(3,100)

4 0

2 years ago

Read 2 more answers

Which of the following terms refers to a practice of allowing the addition of new employees and jobs to existing bargaining unit

Serjik [45]

Answer:

d. accretion

Explanation:

Accretion is the process by which new employees are added to a bargaining unit where they have common interest. It involves the gradual growth of business units. For example when unions transfer workers to a new employer.

Accretion occurs without election and is usually an operation of the law.

It helps preserve industrial stability by filling new jobs without going through an adversarial election process.

5 0

3 years ago

Which economic system has no formal government ​

Which economic system has no formal government