assume an economy is in equilibrium with national income (real gdp) of $5000 and an mpc of 4/5. what will be the new equilibrium level of national income if planned investment increased by $500

Answers

Answer 1

With an MPC of 4/5 and a $500 increase in planned investment, the new equilibrium level of national income would be $7500.



In this scenario, we can use the Keynesian multiplier to determine the new equilibrium level of national income. The Keynesian multiplier formula is given by 1 / (1 - MPC), where MPC represents the marginal propensity to consume.Given an MPC of 4/5, the multiplier would be 1 / (1 - 4/5) = 1 / (1/5) = 5.

If planned investment increases by $500, the total increase in national income will be the product of the multiplier and the change in investment: 5 * $500 = $2500.

Therefore, the new equilibrium level of national income would be the initial income of $5000 plus the increase of $2500, resulting in $7500.

Thus, the new equilibrium level of national income would be $7500.

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Related Questions

Which of the following describes a conflict which happens between a supervisor and a subordinate?
O Intrapersonal conflict
Group conflict
O Intergroup conflict
O Interpersonal conflict

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A conflict between a supervisor and a subordinate can be described as  Interpersonal conflict.

What is interpersonal conflict?

Interpersonal conflict refers to conflict whereby there are at least two people involved. This means that interpersonal conflict refer to issues that a person has with another person, or group of people.

When there is a conflict between a supervisor and a subordinate, these are two different people which means that it is therefore an interpersonal conflict. Intrapersonal conflict on the other hand, refers to when a person has a conflict within themselves about how they should take certain decisions.

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Who benefits from fashion forecasting?

Who benefits from fashion forecasting?

Answers

Answer:

textile developer is the answer

Answer:

textile developer

Explanation: ON PLATO

Since 2010, the UK government has made some progress in reducing the budget deficit by implementing a tight fiscal policy. The deficit has fallen from 9.9 % of GDP (post war) to almost 2% of GDP in 2017-18. Using an appropriate diagram, evaluate the effects of pursuing such a policy on other macro-economic objectives.

Answers

Implementing a tight fiscal policy, aimed at reducing the budget deficit, can have various effects on other macroeconomic objectives. Let's consider some of these effects using an appropriate diagram.

One of the macroeconomic objectives affected by fiscal policy is economic growth. Tight fiscal policy, characterized by reduced government spending and higher taxes, can potentially slow down economic growth in the short run. This is because reduced government spending directly decreases aggregate demand, which can lead to lower levels of output and employment. In the diagram, this would be represented by a leftward shift of the aggregate demand curve (AD).

Additionally, tight fiscal policy can also have implications for inflation. If the reduction in government spending and higher taxes lead to a significant decrease in aggregate demand, it can put downward pressure on prices. This can result in lower inflation rates. In the diagram, this would be depicted by a leftward shift of the aggregate demand curve (AD), leading to a lower price level.

Another macroeconomic objective affected by fiscal policy is unemployment. As mentioned earlier, tight fiscal policy can potentially slow down economic growth, which may result in higher unemployment rates in the short run. The decrease in government spending can directly impact sectors that heavily rely on government contracts or funding, leading to job losses. In the diagram, this would be illustrated by a decrease in employment levels, shifting the economy away from full employment.

However, it is important to note that the long-term effects of tight fiscal policy can differ. By reducing the budget deficit, the government can restore confidence in the economy, leading to lower interest rates and increased private investment. This can potentially stimulate economic growth and create new job opportunities in the long run. In the diagram, this would be represented by an increase in investment and a rightward shift of the aggregate demand curve (AD).

Overall, the effects of pursuing a tight fiscal policy on other macroeconomic objectives depend on various factors, including the size of the fiscal adjustment, the state of the economy, and the responsiveness of other sectors to changes in government spending. It is crucial for policymakers to carefully evaluate these effects and strike a balance between reducing the budget deficit and promoting sustainable economic growth and employment.

Note: The diagram referred to in the response is a standard aggregate demand and aggregate supply (AD-AS) diagram used to analyze macroeconomic relationships.

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Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT COST WITH THE IMPORTANT (RELEVANT) NUMBERS

Answers

Answer:

The answer is "No, the offer is not financially attractive".

Explanation:

Please find the complete question and table in the attachment file.

Costs = 85 dollars

External supplier purchase costs = 101

Its external supplier's bid is not appealing financially. Since a loss of $16 per unit is going to happen. (101 - 85).

The company must produce part T6.

Note: Overhead costs shall not be considered as the cost is irrelevant because they arise even though the part T6 is produced or bought. The price is just $85.

Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT
Is the offer from the outside supplier financially attractive? YES or NO and Why? RECALCULATE THE UNIT

QUESTION 3
A company has the following budgeted data for its first year of operation:
£ Per unit
Direct materials 1.30
Direct labour 1.50
Variable overhead 0.20
Fixed overhead 1.00
(£150,000 / 150,000 units of normal volume)
Total standard factory cost 4.00
Selling price 5.00
Other expenses:
Fixed selling and administration overhead £65,000
Sales commission 5% of sales value
Production and sales in units
Opening stock Nil
Production 170,000
Sales 140,000
REQUIRED
Prepare a budgeted profit statement for the first year of operation using:
i. absorption costing principles (10 marks)
ii. marginal costing principles (10 marks)
(Total 20 marks)​

Answers

Yes yes yes yes yes yes yes

External analysis and internal analysis combined constitute what has come to be called?

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External analysis and internal analysis combined constitute what has come to be called the SWOT analysis.

What is SWOT analysis?

Using a SWOT analysis, a person or organization can determine their strengths, weaknesses, opportunities, and threats in relation to project planning or competitive business environments. Situational analysis or situational evaluation are other names for it. The four pillars of a SWOT analysis are strengths, weaknesses, opportunities, and threats for your business. A SWOT analysis' main goal is to assist enterprises in fully understanding all the variables that go into choosing a course of action. Utilize your opportunities and strengths to advance. Use your strengths to confront threats and repel them. So that you may take advantage of chances, and strengthen your deficiencies. Because the threats are tailored to your weaknesses, withdraw (in Dutch).

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What will the real value of $100 be in 7 years if you hide the money under your mattress and the inflation rate is 2%

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The real value of the money after 7 years, if the money is hidden under the mattress and the inflation rate, is $ 86. 81.

How to find the real value ?

If the inflation rate is 2%, the value of money is expected to decrease by 2% per year.

In 7 years therefore, you can use the future value formula to find the real value of the money to be :

= Value today x ( 1 - rate ) ^ number of years

This gives:

= 100 x ( 1 - 2 % ) ⁷

= $ 86. 81

This means that if you hide $100 under your mattress today, in 7 years, its real value will be $86.81 in terms of what it can buy.

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Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because __________________.

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Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because it requires less stress and cost.

Why is referrals by current employees better?

Publishing advert for Job opening requires a cost and this could take a lot of process before the final candidate is selected.

Getting referral could reduce the number of days and the cost of making different advertisement.

Therefore, Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because it requires less stress and cost.

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how are wages determined in a free market?

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Answer:

Classical economists argue that wages—the price of labor—are determined (like all prices) by supply and demand. They call this the market theory of wage determination. ... Long story short: the price of labor is determined in the free market just like every other price, by the intersection of supply and demand.

Explanation:

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According to the law of demand, as prices increase, the quantity demanded by people .

Answers

Answer:

Quantity supplied will increase

Answer: decreases

Explanation: right on edmentum

equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is? A.greater than the quantity of loanable funds supplied.
B.less than the quantity of loanable funds supplied.
C.equal to the quantity of loanable funds supplied.

Answers

Equilibrium in financial markets occurs at an interest rate where the quantity of loanable funds demanded is less than the quantity of loanable funds supplied.

Option b is correct .

The market for loanable funds reaches equilibrium when the amounts of savings that savers give and the amounts of loans that borrowers demand are equal. The interest rate is changed to bring things into balance. Prices become stable when market supply and demand are in equilibrium. Equilibrium is the term for this. When there is an excess of a good or service, prices normally fall as demand rises.

The actual interest rate will fluctuate if there is an increase or decrease in the amount of loanable funds. The reason for this is that the equilibrium point when the amount of loanable money sought and supplied are equal has changed.

Hence , Option b is correct .

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michelle works in retail and cant decide what products to include in the stores front window display what is the first step she should take to solve this problem

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Michelle works in retail and can't decide what products to include in the store's front window display. What is the first step she should take to solve this problem?

A. List the options.

B. Evaluate the decision/choice.

C. State the problem.

D. Determine the pros and cons.

Answer:

C. State the problem.

Explanation:

To start with, Michelle must remember why he wants to put the product on the front window display. Next, he has to remember what he gains from displaying the products which are to advertise to potential customers.By stating this problem, Michelle now knows what products to include in the front window display because he can now sort the products that are likely to attract customers and display them.

Need asap

Submit your essay on what's next for digital video in the future.

Answers

Answer:

I feel that this will all change because of all the emerging technology that is evolving in just 2018 and is still evolving today. I think that all of the desktops will become more portable an have more features while the common laptop will do the same also there will be even fewer people going out to shop at malls or clothing stores (because of online shopping) which means these local businesses will not be able to pay the rent or they will have to cut down on employment or even lower the hourly wage. This combined will snowball and be even worse by the future

Explanation:

I hope I've done a good answer, have a good day :)

All of these are examples of a price except which? Multiple Choice a) tuition b) wages c) a commission d) a discount

Answers

d) A discount, which is a reduction in the initial cost of a good or service, is not an example of a price.

Is a deal a decrease in the selling price of the goods?

The marked price is decreased to acquire the final selling price, which is known as a discount. Shop owners occasionally give a certain percentage of the marked price off to boost sales or get rid of excess inventory. A concession is what we call this refund.

Is a deal a price cut that is applied to the cost?

Discount refers to a price decrease that is offered. Listed price minus sale price is the discount (S.P.) Overhead costs are additional costs incurred after purchasing an item and are included in the cost price.

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A caramel corn company gives four different prizes, one in each box. They are placed in the boxes at random. Find the average number of boxes a person needs ...

Answers

The average number of boxes a person needs to buy in order to get one of the four different prizes can be found using the formula for expected value. Let X be the number of boxes a person needs to buy to get a prize. Then, the probability of getting a prize in the first box is 4/4, in the second box is 3/4, in the third box is 2/4, and in the fourth box is 1/4.

Therefore, the expected value of X is (1*(1/4)) + (2*(2/4)) + (3*(3/4)) + (4*(4/4)) = 10/4 = 2.5. So, on average, a person needs to buy 2.5 boxes to get one of the four different prizes.
To find the average number of boxes a person needs to buy to collect all four different prizes from the caramel corn company, we can use the concept of the Coupon Collector's Problem. The expected number of boxes needed to collect all four prizes can be calculated as:


E(T) = n * (1/1 + 1/2 + 1/3 + 1/4), where n is the number of distinct prizes (4 in this case).
E(T) = 4 * (1 + 1/2 + 1/3 + 1/4) = 4 * (25/12) = 100/12 ≈ 8.33 boxes.
On average, a person needs to buy approximately 8.33 boxes to collect all four different prizes.

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if sixty second avenue inc. (ssa) decides to deleverage in the future, the total number of shares outstanding will keep decreasing until creditors own 100% of the company. is the statement true or false? false true

Answers

The given statement, if Sixty Second Avenue inc. (ssa) decides to deleverage in the future, the total number of shares outstanding will keep decreasing until creditors own 100% of the company, is false.

What brings about deleveraging?

Deleveraging typically takes place following a market downturn and is therefore motivated by the need to cover losses, which can deplete capital, create a less risky profile, or is necessary by anxious lenders to avert default.

How can value arise from deleveraging?

Deleveraging refers specifically to the repayment of debt owed to lenders. Deleveraging, however, adds value by lowering the transaction's initial leverage, but this strategy necessitates that the portfolio firm produce consistent cash flows (i.e. be non-cyclical and non-seasonal).

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Harper has shown promise, and her manager has suggested that she be paired up with another experienced professional for faster skill development.
What coaching method does the manager use in Harper’s case?
is the training technique that Harper’s manager is using. In this technique, Harper will work with an experienced and already trained employee to develop her skills faster.

Answers

Answer:

i’m pretty sure it’s mentoring

Explanation:

plato

Answer:

Shadowing answer on plato

Explanation:

What recommendations do you have for yourself to be more effective and productive in the workplace based on your performance this session?
What type of performance review would you find helpful to assess your progress?
What would you communicate to your supervisor during your performance review?
What information in your performance review could you use in your Professional Portfolio?

Answers

Communicate your achievements, areas of strength, and areas that need improvement to your supervisor during your performance review.

To be more effective and productive in the workplace, you can follow some recommendations that will help you. Some of them are given below:

Use the Pomodoro Technique - This technique can help you to manage your time more effectively. In this technique, you need to work for 25 minutes and then take a 5-minute break. You can do this cycle three times and then take a long break of 30 minutes. This technique helps you to be more focused on your work and increase your productivity.

Keep your desk clean - A clean workspace can help you to stay organized and increase your productivity. It also helps to reduce stress and increase your focus.

Keep a to-do list - Keep a list of all the tasks you need to do. This will help you to prioritize your work and ensure that you complete all the tasks on time.

Track your progress - Keep a record of your work progress. This will help you to know how much work you have done and how much work you need to do.A 360-degree performance review would be helpful to assess your progress. It includes feedback from your supervisors, peers, and customers.

This type of performance review helps you to get a more accurate view of your performance.You can also discuss your goals for the next session and ask for feedback on how you can improve your performance.

In your performance review, you can use the information about your areas of strength, areas that need improvement, and achievements to create a professional portfolio. This portfolio can help you to showcase your skills and achievements to potential employers. You can also use this information to set goals for your future career development.

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What are the three basic functions of money ?

Answers

Answer: Money has three primary functions. It is a medium of exchange, a unit of account, and a store of value: Medium of Exchange: When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange.

The three basic functions of money are store of value, unit of account, and medium of exchange.

What is money?

The exchange of commodities and services is referred to as "money." The currency is the country's currency. Different countries use various currencies. Money is typically represented by paper notes and coins. When compared to the batter system, money is more convenient.

There are the three basic money functions such as medium of exchange to currency, it was the paper note into the monetary term. Money was the basic purpose of the buying and selling. It was the easily to the store and spend on as per the conveniently.

As a result, the significance of the three basic functions of money are the aforementioned.

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On May 1, Widget Company had 10 gadgets in its Inventory that cost $5 each. On May 10, it sold 5 gadgets. On May 15, it bought 20 more gadgets that cost $6 each. At May 31, it had 25 gadgets in ending inventory. Cost of Goods Sold using LIFO perpetual will be ______ Cost of Goods Sold using LIFO periodic inventory.

Answers

The cost of goods sold using the LIFO perpetual will be $25 ($5 x 5), while the cost of goods sold using the LIFO periodic is $30 ($6 x 5).

What if the LIFO method?

The LIFO method is a cost flow assumption that is based on valuing the cost of goods sold based on the cost of items in stock at the end of the period (periodic) or the period when the stock was sold (perpetual) by assuming that the last stock is sold first.

Data and Calculations:

Date       Description              Units  Unit Cost       Total Cost

May 1      Beginning inventory   10       $5                  $50

May 10    Sales                           -5

May 15    Purchases                  20       $6                   $60

May 31    Ending inventory       25

Thus, the cost of goods sold using the LIFO perpetual will be $25 ($5 x 5), while the cost of goods sold using the LIFO periodic is $30 ($6 x 5).

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Oceans inc. , a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches in excess of his legal limit. This agreement is most likely?

Answers

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely void. Option C. This is further explained below.

What is overstock?

Generally, Oceans Inc., a distributor of seafood, has reached an agreement with Paul, a commercial fisherman, to purchase any "overstock" of fish that Paul captures in excess of the legal limit for his vessel.

This results in an increase in financial expenses since the investment is left in the storage facility rather than being used to generate cash flow or profits. Drives up the cost of logistics due to the fact that warehouse upkeep sometimes results in unused space and additional labor charges.

In conclusion, Overstocking, often known as "surplus stock," occurs when retailers buy more of a product than they actually move out of their shops. If a retailer overorders goods, they will end up with an excessive amount of stock. This surplus merchandise will either be left on shop shelves or in the warehouse, which may be detrimental to the company's profitability.

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Complete question

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

a. enforceable.

b. valid.

c. void.

d. voidable.

When discussing choosing a Cunningham for the jury, Atticus says, “When you analyze it, there was little risk. There’s no difference between one man who’s going to convict and another man who’s going to convict, is there? There’s a faint difference between a man who’s going to convict and a man who’s a little disturbed in his mind, isn’t there?

Answers

Atticus says they're pοοr  grοwers, but want tο get by οn their οwn. Hοwever, they pay in crοps because that's all they can dο, If they need tο hire peοple.

Atticus has nοthing against the Cunninghams, but Scοut dοes n’t knοw any better. She said tο Calpurnia, “ he ain’t cοmpany, Cal, he’s just a Cunningham.

”She alsο says that he lοοks like he was raised οn fish fοοd. After Scοut explained why she was  frenetic at Walter, he tοld her tο put herself in his shοes. That yοu  nοway  really knοw a persοn unless yοu see the wοrld in their pοint οf view.

The Finches are  analοgοus tο the Cunninghams because bοth families are cοnsidered pοοr because οf the Great Depressiοn, indeed thοugh the Cunninghams have lοwer. The are different because οf sοcial class.

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The Marlboro Man advertising campaign was extremely successful and ran from 1954 to 1999. Why would such a campaign not resonate as well with today’s consumers?a. Western movies were more popular in the 1950s than they are today.b. Consumers are not as aware of the risks of smoking.c. It lacks authenticity about masculinity.

Answers

The answer is , such a campaign not resonate as well with today’s consumers because - c. It lacks authenticity about masculinity.

What about todays consumers?

The Marlboro Man advertising campaign was successful in its time because it portrayed a specific image of masculinity that resonated with consumers.

However, today's consumers have different values and perceptions of what it means to be masculine, making the campaign less effective.

Additionally, society has become more aware of the health risks associated with smoking, which makes it harder for consumers to identify with the rugged, tobacco-smoking cowboy image that the campaign promoted.

Finally, the campaign lacks authenticity as it was revealed that the actors portraying the Marlboro Man were not actually cowboys and did not live the rugged lifestyle that they portrayed, which further diminishes its appeal to today's consumers.

Hence, option c. is correct.

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cual es la importancia de tener bodegas en las empresas

Answers

Answer:

la importancia es hacer que la gente compre y los que venden ganen plata

A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. If the pre-split market cap was 1.71B, what would the post-split market cap be?

Answers

A major drugstore chain whose stocks are traded on the New York Stock Exchange was considering a 2-for 5 reverse split. the post-split market cap be 684 million

What is market cap?

Generally, In a 2-for-5 reverse split, every 5 shares of stock are combined into 2 shares. This means that the number of outstanding shares of stock will be reduced by 2.5 times. If the pre-split market cap is 1.71B, the post-split market cap can be calculated by dividing the pre-split market cap by 2.5:

1.71B / 2.5 = 684 million

So, the post-split market cap would be approximately 684 million. Please note that this calculation is based on the assumption that the value of the company's stock remains the same after the reverse split. In practice, the value of the stock may change as a result of the reverse split.

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sidney took a $250 cash advance by using checks linked to her credit card account. the bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. the interest rate on cash advances is 18%. sidney paid the balance in full when the bill arrived. what was the total amount she paid to borrow the $250 (including the $250)?

Answers

Sidney paid a total amount of $261.25 for the cash advance

The annual interest produced by a sum that is paid to investors or charged to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the actual annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or additional costs related to the transaction. Consumers can compare lenders, credit cards, or investment products using the APR as a benchmark figure.

Cash advance amount = $250

Cash advance fee = 3%

So, a cash advance fee = 3% of 250 = $7.50

APR = 18%

So, one month APR = 250*18%*1/12 = $3.75

The total amount paid = Principal + advance fee + APR

= 250 + 7.50 + 3.75

= $261.25

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When can cool product
be combined with other cool product

Answers

Answer:

In what ways are COOL commodities covered? COOL information must be provided at the point of sale for covered commodities. We offer fresh and frozen fruits and vegetables; wild & farm-raised fish and shellfish; muscle cut and ground chicken, lamb, and goat meat; raw peanuts, pecans, and macadamia nuts; and ginseng.

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What is an example of marketing through sports?
Free Bobbleheads being given out in a stadium
Gatorade advertising athletes drinking their product
tora
A team selling its own jerseys on a website
The NFL selling season tickets for a certain team

Answers

One illustration of sports marketing is Gatorade's advertisement for athletes to drink their product, tora. Option B is correct .

What is Sports Marketing ?

Sports marketing is a subfield of marketing that focuses on both promoting other products and services through sports teams and events that are geared toward customers and fans and promoting sports events. It is a service in which a tangible product or a brand name can be promoted. The objective is to furnish the client with systems to elevate sports or to advance another item, administration, business or cause through sports. Through exchange processes, sports marketing is also designed to satisfy consumers' requirements and preferences.

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Assume that tastes change so that tennis is no longer as desirable to play as it is now. What would happen to the market for tennis balls?.

Answers

What will happen in the tennis ball market is demand follows, the equilibrium quantity is smaller, and the price is lower.

Market equilibrium is a condition in which the quantity demanded is equal to the quantity supplied at a certain price level. The definition of market equilibrium also means that the price of goods supplied is the same as the price demanded by buyers.

In business, you will certainly make a bargain to reach a certain price. It is this process that produces market equilibrium, where goods are sold and purchased at an agreed price.

The market equilibrium point is when the price tends to remain or is called the equilibrium price. This condition can occur based on the difference between supply and demand.

Demand that is higher than supply will cause prices to rise. Vice versa, a higher supply will make the price go down.

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Please help............

Please help............

Answers

it would be 900 because 8% of 900 is 72
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