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Phantasy [73]
2 years ago
15

g Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Instructions: In part a, round your an

swers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Business
1 answer:
Klio2033 [76]2 years ago
7 0

Answer: $5 billion

Explanation:

First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.

Multiplier = 1 / (1 - Marginal propensity to consume)

= 1 / ( 1 - 0.8)

= 5

If the government wants to raise Aggregate demand by $25 billion, they should spend:

Increase in AD = Amount * Multiplier

25 billion = Amount * 5

Amount = 25 / 5

= $5 billion

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Suppose the GDP of Australia is 100,000 AUD and the exchange rate between AUD and USD is 1.34 AUD=$1. What is the GDP of Austral
Hitman42 [59]

Answer:

The value of GDP in dollars = $74600

Explanation:

Given the GDP (gross domestic product) of Australia = 100000 AUD

Given the exchange rate, 1.34 AUD = $1.

Since we have given the total amount of GDP for Australia and exchange rate. Now we have to calculate the value of Australian GDP in the dollars. We can find this by dividing the total GDP with 1.34 AUD.

The value of GDP in dollars = 100000 / 1.34 = $74626.86 or $74600.

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Each of the four types of checking accounts listed in the table above offers free ATM
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Which one has the objective of "long-term financial success"?
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C saving

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3 years ago
What responsibilities does the team leader have in a collaborative project such as designing a formal report
rodikova [14]

Answer and explanation:

Leaders are always the ones who direct teams into achieving the collective goals the group has set. On writing a formal report, the leader must identify the members capable of gathering precise data that will support the report ideas. After that information is collected, the first draft must be written with the conclusions all the team members came up with. Then, the final report must be elaborated with the approval of most parts of the team to finally handle the report to the leader so he or she can present it.

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Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the r
guajiro [1.7K]

Answer:

b) A free market in tradable permits is typically more efficient that government regulation

Explanation:

  • When companies are forced to buy rights to pollute, they are paying a cost for the pollution they create. If they pollute more, they will end paying more for that pollution. (demand of rights to pollute)
  • On the other hand, companies that pollute almost nothing  can sell rights to pullute saving money: this will create a benefit for companies who take care of environment. (supply of rights to pollute)
  • Then, there will be a market of rights to pullute, where some companies will sell and others will buy rights to pullute. In this market, the price of rights to pollute will be determined efficiently.
  • Because the production of absolutely every good or service sold in our economy implies pollution, there is a cost society is willing to pay in terms of pollution to get the goods and services it consumes.<em> For example</em>, I am willing to keep buying soda, besides I now for sure its production has certain negative effects on environment. I demand the product, therefore the company (that pollutes) has incentives to keep selling the product.
  • The cost we are willing to pay to keep consuming goods will be related to the demand and supply of rights to pollute : companies whose producs are more demanded (by us!) would buy more rights to pollute when neccesary, and companies whose products are not that demanded will buy less rights to pollute, transmiting this results to prices.
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2 years ago
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