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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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Zhang Company reported Cost of goods sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The avera
Lilit [14]

Answer:

Average inventory= $41,750

Explanation:

Giving the following information:

Beginning Inventory= $37,200

Ending Inventory= $46,300

<u>To calculate the average inventory, we need to use the following formula:</u>

Average inventory= (beginning inventory + ending inventory) / 2

Average inventory= (37,200 + 46,300) / 2

Average inventory= $41,750

6 0
3 years ago
Harriet's Wimsey is a bookstore for people who love mysteries. How would a complete set of P. D. James mystery novels, a first e
adoni [48]

Answer:

E. as current assets

Explanation:

As we know that the

Balance sheet records the total assets, total liabilities and the stockholder equity

Where

The total assets comprises of current assets, tangible assets, and the intangible assets

And, the total liabilities comprises of current liabilities and the long term liabilities

In the given scenario, the purchase of the newest Dorothy Cannell book be listed on the store's balance sheet. So here, the newest Dorothy Cannel book represent the current asset side of the balance sheet

5 0
3 years ago
The Geostar Company, leading manufacturer of wireless communication devices, is considering three cost-reduction proposals in ts
S_A_V [24]

Answer: Alternative 3 will be selected.

Explanation:

The system that should be selected is the alternative that is better than the other alternatives by being higher than MARR if selected.

First compare A1 to A0

The rate of return here is 18% which is higher than the MARR of 15% so Alternative 1 should be chosen over A0 which is to do nothing.

Compare A1 to A2

If A2 is chosen over A1, the incremental return is 10% which is less than the MARR of 15% so A2 should not be chosen over A1. A1 should instead be chosen over A2.

Compare A1 to A3

If A3 is chosen over A1 then the incremental return would be 18%. This is higher than the MARR of 15% so Alternative 3 should be chosen over Alternative 1.

Alternative 3 should be chosen over A1 which should be chosen over A2 and A0.

A3 will therefore be selected.

7 0
2 years ago
A deep sea diving bell is being lowered at a constant rate. After 12 ​minutes, the bell is at a depth of 400 ft. After 50 minute
ella [17]

Answer: After 50 minutes the bell is at a depth of 2000 ft so we can find the average rate by

2000/50 =40 ft per minute.

We ignore the 400 ft in 12 minutes because that is included when we take out the average at 50 minutes and adding it in would be an error of doubly entry.

Explanation:

6 0
3 years ago
Nathanial’s company developed a new machine that could sort through a stock of produced goods to identify defective ones. His co
Marta_Voda [28]

Nathanial’s company can apply for a Utility Patents patent for the new machine.

<u>Explanation:</u>

Any intellectual property can be protected by the use of a patent. Filing for legal protection is the major requirement for acquiring a patent. Patent are useful for the protection of any new process, machine or anything that is created physically. Utility patent, plant patent, provisional patent and design patent are the different types of patents that exists in US.

When a new product,machine or process is created or remodeled then Utility Patent helps to protect them. "patent for Invention" is the other name given for Utility patent. It protects your inventions from being sold or used by other industries or enterprises without your authorization.

5 0
3 years ago
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