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Airida [17]
3 years ago
6

Suppose an economy is producing real GDP of $300 billion. The potential output is equal to $400 billion, and the marginal propen

sity to consume is equal to 0.80. The government should ____ taxes by _____ to bring the economy to potential output.
Business
1 answer:
lukranit [14]3 years ago
7 0

Answer:

The government should <u>LOWER</u> taxes by <u>$25</u> to bring the economy to potential output.

Explanation:

the tax multiplier = -MPC / (1 - MPC) = -0.8 / (1 - 0.8) = -0.8 / 0.2 = -4

if you want to increase GDP by $100 billion, you must cut taxes by $25 billion.

total effect = -$25 billion x -4 = $100 billion increase

that would increase the GDP from its current $300 billion level to $400 billion

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Tom elects the Life Income with 10-year Period Certain settlement option. Tom dies in year 6. The beneficiary receives payments
Sonbull [250]

Answer:

B. 4 years

Explanation:

As per the certain life income period, the guaranteed payments for the recipient lifetime or the specified time duration whichever is more.

Now if the recipient dies before the certain period ended, so the payments would be continued to the other beneficiary unless there is an end for the certain period

So, in the given situation, the payments would be received for

= 10 years - 6 years

= 4 years

Hence, the correct option is B. 4 years

6 0
3 years ago
Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few day
Dmitriy789 [7]

Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and she needs to decide right away how and where to purchase her books. Brita will most likely engage in "limited problem solving" process.

<h3>What is limited problem solving process?</h3>

Limited issue solving is another sort of consumer problem-solving that consumers employ when they need information about unknown brands in well-known product categories or when they make sporadic purchases of goods; it takes a fair amount of time for information collecting and consideration.

The characteristics of limit solving process are-

  • Limited issue solving is employed when consumers seek information about a new brand within a well-known product category or when they occasionally purchase products.
  • When buying a new, expensive, or infrequently purchased goods, consumers engage in lengthy problem solving.
  • Possibly when you need to find out information about an unusual brand in a well-known product area, takes a fair amount of time to gather information.
  • Clothing is one example where it is known the product class but not the brand.

Therefore, in the given case- Brita lacks the time to thoroughly consider all of his alternatives. Additionally, he will likely follow suit this time around given his recent success purchasing books online (unless he waited too long and cannot receive his books in time).

To know more about steps in the problem solving process, here

brainly.com/question/10708306

#SPJ4

6 0
2 years ago
Ralph agrees to lease an apartment from Susan for one day to see Thomas, the president of the United States, deliver a speech in
Reptile [31]

Answer:

A, discharged

Explanation:

Since the speech to be seen is cancelled well ahead of the due date, then the contract between Ralph and Susan is discharged. There is no more speech to listen to and as such Susan can have her apartment back.

Cheers.

5 0
3 years ago
Bonnie's coworker reports an error that Bonnie made to the manager. Bonnie is mad and gets back at her coworker by starting an u
Gekata [30.6K]

Answer:

<u>Unethical work behavior</u>

Explanation:

It is very unfortunate in many organization for such kind of scenarios to occur which could lead to dismissal from work if the  gets to know about the attitude.

Remembering that no one will be pleased totally in workplace you will have to give people the benefit of the doubt by trusting them because If we all run around mistrusting others, we end up creating a miserably unhappy business culture.

3 0
3 years ago
What is one of the benefits of the current pattern of global trade?
Harlamova29_29 [7]

Answer:

The correct answer is A. One of the benefits of the current pattern of global trade is that consumers pay lower prices for goods and services.

Explanation:

Today, globalization has expanded international markets, interconnecting nations and their economies through free trade agreements, tariff elimination agreements and even through the transfer of companies from developed countries to peripheral countries, generating work in these nations and lowering production costs that allow reducing prices. All this allows consumers to access goods and services at a much lower cost than they previously accessed, thus reducing the amount they dedicate to consumption and thus increasing the performance of their wages, even allowing poverty reduction and a greater quality of life for people.

6 0
3 years ago
Read 2 more answers
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