The business cycle is the movement of an economy from one condition to another and back again. The business cycle is also known as the economic cycle or trade cycle. This cycle represents the movement of resources from one end and their comeback at the same end after revolving. It can be understood as a businessman invests money in the business in the form of costs and the money comes back in the form of revenue or sales.
Hence the answer is the <u>Economic cycle</u>
Based on the economic data given, and the fact that the government is running a deficit, the equilibrium GDP will be 336.67.
If government spending is cut to balance the budget, the new level of GDP will be 321.67.
The effect of balancing the budget will be a decrease in GDP and a slower recovery from the recesssion.
<h3>What is the equilibrium GDP?</h3>
This is given by the variable "Y" so we can find the equilibrium GDP by solving for it:
C = 50 + .7(Y – T)
Y = C + I + G - XN
C = Y - I - G + XN
Solving gives:
Y - I - G + XN = 50 + .7(Y – T)
Y - 40 - 35 + 10 = 50 + 0.7Y - 14
Y - 0.7Y = 50 + 40 + 35 - 10 - 14
0.3Y = 101
Y = 101/0.3
= 336.67
<h3>What is the new GDP if government spending is cut?</h3>
Government spending will have to be cut to a size that would make it equal to taxes so government spending becomes 20.
New GDP becomes:
= C + I + G - XN
= ( 50 + .7(Y – T)) + 40 + 20 - 10
= 271.67 + 40 + 20 - 10
= 321.67
Find out more on GDP at brainly.com/question/1384502.
Answer:
The corrects answers for this would be A and C.
Explanation:
As you can see, for both a and c, those are the only two answers that have a negative outcome, hence the negative externality.
Answer:
I think the answer is A but sorry if I'm wrong
Cooperative organisations obtain money for funding their ongoing operating expenses and mortgage payment by collecting regular assessments from their shareholders. Cooperative organisations usually avoid external sources of financing as much as possible; they normally tax members to get the necessary funds.
