The new equilibrium price is higher and the new equilibrium quantity is higher
Answer:
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Answer:
When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Explanation:
According to the Keynesian perspective, firms produce output only if they expect it to sell.
While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.
Keynes termed a fall in the aggregate demand as a recessionary gap.
A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.
Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
On January 1, 2021, the Excel Delivery Company purchased a delivery van for $153,000. At the end of its five-year service life, it is estimated that the van will be worth $15,600.
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= (153,000/5)*2= 61,200
Year 2= [(153,000 - 61,200)/5]*2= 36,720
Year 3= (55,080/5)*2= 22,032
Year 4= 13,219
Year 5= 7,932
Total= $141,103
An equilibrium price is where the quantity of goods supplied is equal to the quantity of goods demanded. So if supplies of the said product goes down the equilibrium will go down and the price and demand will be higher.
