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Rainbow [258]
3 years ago
5

If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential

real GDP level. Group of answer choices total spending needs to increase by $0.1 billion nominal GDP needs to increase by $1.2 billion total spending needs to decrease by $6 billion nominal GDP needs to decrease by $12 billion total spending needs to increase by $0.4 billion
Business
1 answer:
rosijanka [135]3 years ago
3 0

Answer:

total spending needs to increase by $0.4 billion

Explanation:

Calculation to determine how much total spending needs to increase or decrease

Using this formula

Increase or Decrease in total spending=Equilibrium income/Spending multiplier

Let plug in the formula

Increase or Decrease in total spending=$2 billion/5

Increase or Decrease in total spending=$0.4 billion

Therefore If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then TOTAL SPENDING NEEDS TO INCREASE BY $0.4 BILLION to reach the potential real GDP level.

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On January 1, 20X9, Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash. The fair value
Ainat [17]

Answer:

Consider the following calculations. The answer is $135,000.

Explanation:

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7 0
3 years ago
Emma owns a flower shop in tampa. she pays $3,091 per month to lease her building, $2,208 in wages, $1,887 for flowers and other
Harrizon [31]

To solve for total costs = $3,091 + $2,208 + $1,887 = $7,186 then we need to divide this based on the 662 arrangements she normally produces = $10.85 per arrangement is what she spends.


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8 0
3 years ago
The Boston Consulting Group’s Growth-Share Matrix classifies a firm’s products into four categories based on growth rates of the
iVinArrow [24]

Answer:

False

Explanation:

The Boston Consulting Group’s Growth-Share Matrix is a business planning tool that evaluates the potential of brand portfolios and alternative strategies.

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7 0
3 years ago
Incident Reports, such as Situation Reports and Status Reports enhance situational awareness and ensure that personnel can acces
Irina-Kira [14]

Answer:

The correct answer is True.

Explanation:

An incident report is a tool that records any event that could cause injury to people or damage to company assets. It should include almost accidents, damage to property and equipment, health and safety issues, safety violations and misconduct in the workplace.

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7 0
3 years ago
where cost is in dollars and time is in minutes. The cost of driving an automobile is $5.50 with a travel time of 21 minutes, wh
LenKa [72]

This question seems incomplete. Here is the detailed and complete question:

A work-mode-choice model is developed from data acquired in the field in order to determine the probabilities of individual travelers selecting various modes. the mode choices include automobile drive-alone (dl), automobile shared-ride (sr), and bus (b). the utility functions are estimated as follows: udl = 2.6 - 0.3(costdl) - 0.02(travel timedl) usr = 0.7 - 0.3(costsr) - 0.04(travel timesr) ub = -0.3(costb) - 0.01(travel timeb) where cost is in dollars and time is in minutes. the cost of driving an automobile is $5.50 with a travel time of 21 minutes, while the bus fare is $1.25 with a travel time of 27 minutes. how many people will use the shared-ride mode from a community of 4500 workers, assuming the shared-ride option always consists of three individuals sharing costs equally?

Answer: 828 workers will use the shared - ride mode.

Explanation: You can see the attached for a more detailed explanation.

7 0
3 years ago
Read 2 more answers
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