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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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Explain the required steps to complete a work sheet by placing the following steps in the correct order. (Put the first step at
MrRissso [65]

Answer:

Explanation:

This is the correct answer

3 0
2 years ago
BruceCo is planning on selling backpacks for $100 each. The company can buy the backpacks for $30.00 and have them customized fo
Evgen [1.6K]

Answer: BruceCo would have to sell 220 backpacks

Explanation: The projection of a $10,000 profit can be calculated properly by the equation;

Revenue - Cost = Profit

There is a one-time set up charge of 1000 and this is a fixed cost (as it does not change regardless of how many units they eventually sell). Also they would be spending $30 to buy each unit and still spend $20 to customize each. So each unit would cost $50 to acquire. If they plan on selling each unit at the rate of $100, then the total revenue would be 100 times X (where X is the number of units sold). Therefore the profit can be better projected by the equation;

Revenue - Cost = Profit

100X - (50X + 1000) = 10000

100X -50X - 1000 = 10000

50X = 10000 + 1000

50X = 11000

Divide both sides of the equation by 50

X = 220

Therefore, BruceCo must sell 220 units (at least) in order to meet a $10,000 profit projection

4 0
3 years ago
Organizational structure refers to formalized patterns of interactions linking Tasks, Technologies and Processes
snow_tiger [21]

Answer:

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8 0
3 years ago
How does Lincoln honor the battle of Gettysburg in his address? What did the soldiers fight for in his opinion?
Pani-rosa [81]

Answer:

a. He honors the battle in his address using the following words, ''Now we are engaged in a great civil war, testing whether that nation or any nation so conceived and so dedicated, can long endure. We are met on a great battle-field of that war.''

b. In his opinion the soldiers fought for freedom, equality and human rights.

Explanation:

The Gettysburg address was a short speech made by Abraham Lincoln on November 19, 1863 at the official dedication ceremony in Pennsylvania at the site of the battle field after the civil war. It was a declaration of freedom and independence and further cemented the soldiers sacrifice for equality and human rights.

He honored the battles by reiterating that the sacrifice made by the soldiers will not be in vain. This he does by saying that the soldiers themselves whether alive or dead have already consecrated the ground of battle and no further addition or detraction is needed. This meant that the battles itself was proof enough that the nation was ready for independence and justice.

Additionally, he also stated that the soldiers fought for freedom and the government for the people, by the people and of the people. This in other words means that the soldiers fought for democracy, where everyone is equal under the law. That equality and justice is the foundation upon which this newly independent nation has been built.

6 0
3 years ago
Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal conta
Nuetrik [128]

Answer: Please refer to Explanation.

Explanation:

1. Honesty.

State the purpose of your call to the secretary and sell your product. For instance, " Hello, my name is Mr. Petal and I represent a fast rising Paper and Metal Container company. After researching about your company, I felt it most expedient to get in touch with Mr. Firestone as I believe this is business he will be interested in. We offer perks that are unmatched in the industry".

2. Persistence.

You can be persistent on the phone if you detect deceit in the secretary's tone.

For instance,

" Having been in the chemical industry myself, I know such an opportunity does not come often and I really do guarantee that we give the best benefits in the industry. If you can, just let me talk to Mr. Firestone, I promise that neither of you will regret it".

If it still doesn't work, ask for a convenient time you can call back.

4 0
3 years ago
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