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 right answer is option (D).
Explanation:
According to the scenario, the most appropriate answer is option (D) because systematic study can be defined as the study of social relationships and behavior and making a decision on the basis of data collected.
While the other options are not that appropriate because of the following reasons:
- The organizational study can be defined as the study when a person organizes a process which results in boosting the social relation.
- Intuitive study shows the concept of making decision immediately without going deep on data collected.
- Theoretical study shows the concept of study anything very theoretic and than makes the decision.
- Case-based study shows the concept of study which checks though the results of similar cases to make any decision.
Answer:
b. $325,000
Explanation:
The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.
Given;
Inventory = $84,000,
Long-term Debt = $125.000;
Common Stock $60,000;
Accounts Payable $44,000;
Cash $132,000,
Buildings and Equipment $390,000:
Short-term Debt $48.000:
Accounts Receivable $109,000,
Retained Earnings $204,000 Notes Payable $54.000:
Accumulated Depreciation $180.000
Total current asset = $84,000 + $132,000 + $109,000
= $325,000
Answer:
Explanation:
Market prices control the supply for coffee shops, not only that but also it is also affected by other factors with things like: price of inputs, and how much it cost to make, and technology developments
Answer: A)domestic strategy
Explanation: Domestic strategy is a type of marketing strategy that is particularly used for the domestic purpose that is when a company establishes branch for particular company for the marketing . They don't have a focus on global areas rather than considering only the geographical area in their part.
They establishes their marketing strategy according to the factors like cultures,need, traditions, demand, preferences etc.
