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Free_Kalibri [48]
2 years ago
15

Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als

o assume that the economy's current level of output is $1,900 and at the price level of 100 current aggregate demand is $1,820. If the government moves the economy back to the full-employment level of output by reducing taxes by $60, then the MPC equals :________
Business
1 answer:
mariarad [96]2 years ago
8 0

Answer:

MPC = 0.4

Explanation:

Multiplier shows change in income due to change (increase) in investment, or change (decrease) in tax. It is calculated by Marginal Propensity to Consume, as follows -

Multiplier ie k = Δ Income / Δ (govt investment or tax) = 1 / (1 - MPC)

Given : ΔG  ie tax fall = 60 ; Targeted income rise = Full employment - actual output = 2000 - 1900 = 100

k = ΔY / ΔG = 100 / 60 = 1.67

k = 1 / (1 - MPC) → 1 - MPC = 1 / k → 1 - MPC = 1 / 1.67 → 1 - MPC = 0.6

MPC = 1 - 0.6 → MPC = 0.4

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The Donaldson Furniture Company produces three types of rocking​ chairs: the​ children's model, the standard​ model, and the exe
Nataly_w [17]

Answer:

Children's model = 7

Standard model = 9

Executive model = 13

Explanation:

Let a = number of children's model

b= number of standard model

c = number of executive model

According to the question given, the time allocation is as follows;

Cutting; a = 5 hr     b = 4hr     c = 7hr, Maximum hours = 162 hours

Construction; a = 3 hr     b = 2hr     c = 5hr, Maximum hours = 104 hours

Finishing; a = 2 hr     b = 2hr     c = 4hr, Maximum hours = 84 hours

We can therefore derive the equations.

5a + 4b + 7c = 162     (i)

3a + 2b + 5c = 104     (ii)

2a + 2b + 4c = 84     (iii)

Subtracting (iii) from (ii), a + c = 20, a = 20 - c     (iv)

Substituting (iv) into (ii)

60 - 3c + 2b + 5c = 104

2b + 2c = 44     (v)

Substituting (iv) into (i)

100 - 5c + 4b + 7c = 162

4b + 2c = 62     (vi)

Subtracting (v) from (vi), we have

2b = 18; b = 9

Since b + c = 22,

c =22 - 9 = 13

Also, a + c =20

a = 20 - 13 = 7

4 0
3 years ago
The Big Black Bird Company​ (BBBC) has a large order for special​ plastic-lined military uniforms to be used in an urgent milita
zysi [14]

Answer:

first we must calculate the original value of the goods produced = $240 x 2,600 = $624,000

original cost = $125 x 2,600 = $325,000

original amount of labor used = (72 + 32) x 40 = 4,160 hours

value of goods after change = 3,800 x $240 = $912,000

cost after change = 3,800 x $152 = $577,600

labor used after change = (72 + 32) x 72 = 7,488 hours

a) original multifactor productivity = $624,000 / $325,000 = $1.92 per dollar spent

multifactor productivity after change = $912,000 / $577,600 = $1.58 per dollar spent

multifactor productivity decreased by 17.71%

b) original labor productivity = $624,000 / 4,160 hours = $150 per labor hour

labor productivity after change = $912,000 / 7,488 hours = $121.79 per labor hour

labor productivity decreased by 18.81%

c) change in weekly profits = ($912,000 - $577,600) - ($624,000 - $325,000 = $35,400 increase

8 0
3 years ago
Vivi Corporation had net income of $401,000 in 2015. The company's Common Stock account balance all year long was $267,000 ($10
Leto [7]

Answer:

2.23 is the price earnings ratio.

Explanation:

Firstly we must find the Earnings per share for this problem as it is needed to calculate the price earnings ratio so earnings per share = (Net income)/(Number of shares outstanding).

we are given net income of $401000 then to obtain number of shares outstanding for 2015 are $267000/$10 as we saw the company's common stock account balance all year long was that value of which each share has a par value of $10, then we get outstanding shares which are 26700 now we calculate the earnings per share (EPS) by using the above formula with substituting the above mentioned values :

Earnings Per Share= $401000/26700

                              = $15.01872659

now we will use the Price Earnings Ratio formula which is

Price Earnings Ratio = (current share price)/(earnings per share )

we have been given a current share price of $33.50 now we will use the earnings per share which was calculated above.

Price Earnings Ratio = $33.50/$15.01872659

                                   = 2.230548628 then we round off the answer to two decimal places

Price Earnings Ratio = 2.23

4 0
3 years ago
How much would $100, growing at 5% per year, be worth after 75 years?a. $3,689.11b. $3,883.27c. $4,077.43d. $4,281.30e. $4,495.3
Radda [10]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

How much would $100, growing at 5% per year, be worth after 75 years?

We need to use the following formula to calculate the final value.

FV= PV*(1+i)^n

FV= 100*(1+0.05)^75

FV= $3,883.27

6 0
3 years ago
Denmark is a good example of a nation-state because:.
inna [77]

Denmark is a good example of a nation-state because nearly all Danes speak D.anish and live in Denmark.

<h3>What is nation-state?</h3>

Basically, a nation-state refers to sovereignty or state that is ruled in the name of a community of citizens that identify themselves as a nation.

Generally, the main component of a nation-state is presence of only one culture and language.

Therefore, the Option A is correct.

Read more about nation-state

<em>brainly.com/question/15232128</em>

8 0
2 years ago
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