The economy is in long-run equilibrium. Technological change shifts the long-run aggregate supply curve $120 billion to the right. At the same time, government purchases increase by $30 billion. If the MPC equals 0.8 and the crowding-out effects are $30 billion, we would expect that in the long run. (C)

a. real GDP would be higher but the price level would be lower
b. both real GDP and the price level would be lower
c. real GDP would be higher but the price level would be the same
d. both real GDP and the price level would be higher

Answers

Answer 1

Answer:

C. Real GDP would be higher but the price level would be the same

Explanation:

Real gdp would get to be higher as long run aggregate supply goes up. Prices would go down because as long run aggregate supply goes up, aggregate demand does not experience the same proportional increase. As long run aggregate supply goes up, short run aggregate supply falls backwards.


Related Questions

How are a startup's financing requirements estimated

Answers

Answer:

How are Startups Financing Requirements Estimated?

1. Make Use of a Startup Work Sheet to be Able to Plan the Initial Financing.

2.  Focus on the Expenses versus Assets. Another way for startups to estimate their financing requirements is by means of focusing on the expenses versus assets.

3. Similar Articles.

4. Cash Balance Prior to the Starting Date.

Explanation:

Company A owns a 40% equity method investment in Company B. Subsequently, Company A acquires a controlling interest in a Company B and now must prepare consolidated financial statements. If the date Company A obtains control occurs midyear, how are subsidiary revenues and expenses reported in consolidated income statement in the year of the business combination

Answers

Answer:

Pre acquisition subsidiary revenues and expenses are excluded from consolidated revenue and expenses. Post acquisition subsidiary revenues and expenses are included in consolidated revenues and expenses.  

Explanation:

Company A has acquired control over company B. When accounting for the consolidated financial statement the pre acquisition revenues and expenses will not be included, only post acquisition revenues and expenses will be included in the consolidated statement and they will be accounted for according to controlling percentage.

Which Finance jobs can someone pursue with only a high school diploma? Check all that apply.

Tax Preparer

Treasurer

Actuary

Teller

Loan Officer

Quantitative Analyst

Answers

Answer:

Actuary, Tax Preparer and Loan Officer

Answer:

A, C, and E

Explanation:

Actuary, Tax Preparer and Loan Officer

Q 9.20: City Mission is a not-for-profit organization that provides hot meals, living quarters, and showers for homeless people. Based on their yearly budget, they expect to spend $450,000 on food expenses, $350,000 on housing expenses, $280,000 on staff salaries, $90,000 on utilities, and $118,000 on other expenses. How much will City Mission need to raise in donations

Answers

Answer:

at least $1,288,000 in donation

Explanation:

With regards to the above information, we would add up all the expenses to arrive at how much donation that need City Mission needs to raise.

= Expenses on food + Housing expenses + Staff salaries + Utilities + Other expenses

= $450,000 + $350,000 + $280,000 + $90,000 + $118,000

= $1,288,000

The above is a large sum of money to raise only from donations, and by right a level or various levels of government should help pay for these expenses as no one go homeless either that or provide low cost homes for the homeless.

C Corporation is investigating automating a process by purchasing a machine for $808,200 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $22,800. The annual depreciation on the new machine would be $89,800. The simple rate of return on the investment is closest to (Ignore income taxes.): Multiple Choice 11.28% 5.28% 6.52% 16.88%

Answers

Answer:

6.52%

Explanation:

According to the scenario, computation of the given data are as follows,

New machine cost = $808,200

Scrap sold = $22,800

Cost of investment = $808,200 - $22,800 = $785,400

Saving from new machine = $141,000

Annual depreciation of machine = $89,800

Net operating income = $141,000 - $89,800 = $51,200

Now we can calculate the rate of return by using following formula,

Simple rate of return = Net operating income ÷ Cost of Investment

= $51,200 ÷ $785,400

= 6.52%

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $770,000; Allowance for Doubtful Accounts has a credit balance of $7,000; and sales for the year total $3,470,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $32,200. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.

Answers

Answer:

A. $25,200

B. Accounts Receivable $770,000

Allowance for Doubtful Accounts $32,200

Bad Debt Expense $25,200

C. $744,800

Explanation:

a. Calculation to Determine the amount of the adjusting entry for uncollectible accounts using this formula

Uncollectible accounts Adjusting entry= Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts

Let plug in the formula

Uncollectible accounts Adjusting entry=$32,200 - $7,000

Uncollectible accounts Adjusting entry= $25,200

Therefore the amount of the adjusting entry for uncollectible accounts is $25,200

B. Based on the information given the adjusted balances of Accounts Receivable will be $770,000

Based on the information given the adjusted balances of Allowance for Doubtful Accounts will be $32,200

Bad Debt Expense = $32,200 - $7,000

Bad Debt Expense= $25,200

c. Calculation to Determine the net realizable value of accounts receivable

Using this formula

Net realizable value of accounts receivable = Accounts receivables - Bad debt

Let plug in the formula

Net realizable value of accounts receivable= $770,000 - $25,200

Net realizable value of accounts receivable=$744,800

Therefore Net realizable value of accounts receivable is $744,800

Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $34 per board, consisting of variable costs per unit of $24 and fixed costs per unit of $10.
Further assume Sanmina-SCI offers to sell Hewlett-Packard the 12,000 circuit boards for $34 each.
If Hewlett-Packard accepts this offer, the facilities currently used to make the boards could be rented to one of Hewlett-Packard's suppliers for $46,000 per year.
In addition, $6 per unit of the fixed overhead applied to the circuit boards would be totally eliminated.
Calculate the net benefit (cost) to HP of outsourcing the component from Samina-SCI.
(Use a negative sign with your answer, if appropriate.)

Answers

Answer:

The net benefit is -$26,000

Explanation:

Given the above information,

The total cost of manufacturing 12,000 circuit boards

= 12,000 × $34

= $408,000

Total purchase price

= 12,000 × $34

= $408,000

Fixed overhead cost applied

= 12,000 × $6

= $72,000

The rental income = $46,000

Outsourcing cost

= Total purchase price + Fixed overhead cost applied - Rental income

= $408,000 + $72,000 - $46,000

= $434,000

Therefore, Net benefit

= Total cost of manufacturing - Outsourcing cost

=$408,000 - $434,000

= -$26,000

Ingraham Inc. currently has $820,000 in accounts receivable, and its days sales outstanding (DSO) is 54 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year.

Answers

Answer: 451759.29

Explanation:

To solve the question, we need to calculate the current sales. This will be calculated by using the formula:

DSO = (Account receivable × 365) / Sales

54 = 820000 × 365 / Sales

Sales = 820000 × 365 / 54

Sales = 5542593

After the new policy, the expected sales will be:

= 5542593 × (1 - 15%)

= 5542593 × (1 - 0.15)

= 5542593 × 0.85

= 4711204.5

The level of accounts receivable following the change will be:

DSO = (Account receivable × 365) / Sales

35 = Account receivable × 365 / 4711204.5

Account receivable = 35 × 4711204.5 / 365

Account receivable = 451759.29

What to do most careers in Finance deal with?

a) real estate and education

b) assets and liabilities

c) assets and retail

d) real estate and retail

Answers

Answer:

b

Explanation:

B)

Answer: B would be the answer

Explanation: assist and liabilities

An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: DateValue Immediately Before DepositDeposit March 154020 June 18080 October 117575 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent annual effective yield during the first 6 months is equal to the (time-weighted) annual effective yield during the entire 1-year period. Calculate X.

Answers

Answer:

236.25

Explanation:

Calculation to determine X

First step is to calculate the 6 months Yield

6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)

6 month Yield=(40/60) (80/60) (157.60/160)-1

6 month Yield=5%

Second step is to calculate the Annual equivalent

Annual equivalent=(1.05)^2-1

Annual equivalent=10.25%

Third step is to calculate the 1 year yield

1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)

1 year yield=(40/50) (80/60) (175/160) (x/250)-1

1 year yield=0.1025

Now Let calculate X

x(0.004667)=1+.1025

x(0.004667)=1.1025

x=1.1025/0.004667

x=236.25

Therefore X is 236.25

Other Questions
Read these excerpts from Fever 1793 and The Summer of the Pestilence.Fiction: Fever 1793A violent thunderstorm on Sunday cleared the air for a few hours, but when the sun came out Monday, it baked the streets until the rainwater rose in ghostly plumes of steam. I felt like a noodle over-boiled in the stewpot. And the bells continued to toll.Nonfiction: The Summer of the PestilenceDuring dry, warm days, the fever has seemed to spread but slowly; but when these chill northeasterly storms have come, it has taken whole sections of the city in a night.In what way do the excerpts reveal setting?Both use a characters point of view to show setting.Both use descriptive details to show setting.Both use figurative language to show setting.Both use facts to show setting. A gas system has an initial number of moles of 0.693 moles with the volume unknown. When the number of moles changes to 0.928 moles volume is found to be 7.98 L. What was the initial volume in mL? 2[32-(4-1)] answer. Question 3 of 20 -0000 UNIT SCI07 408 SLPS2021Question: 1-3A biologist describes two modern-day species as "sharing a common ancestor." What does it mean when two species share a common ancestor?Both species evolved from one species that lived in the pastOne of the species evolved into the other speciesThe two species are actually the same species with genetic variationThe two species reproduced with one another and formed a common ancestor The Constitution is silent on the subject of the acquisition of territory.a. Trueb. False Find the slope of the line graphed below. Calculate the equilibrium constant of the reaction below if the pressures are 1.0atm, 2.0 atm, and 1.0 atm respectively. PCl3 + Cl2 PCl5 LOOKS EASY !! NO FILES/LINK THX Which is a diagonal through the interior of the cube?AHBECHFG what would have happened if Malala didntfight for education rights ? PLEASE HELP FAST!!!!As humans continued to burn more and more oil and natural resources what has happenedto the world's carbon dioxide output? Yo____el almuerzo con mis amigos.A.) compartenB.) compartoC.) comparteD.) compartimos Austin is helping his mom stain their wooden deck shown in the diagram below.The diagram is shown.Part A. How many square feet of the deck do Austin and his mom need to stain?Part B. If a can of stain covers 200 square feet, how many cans of stain will they need to buy to cover the entire deck?Enter the correct answers in the boxes. HELP MEEEE !!!Plsssss Help Me PleaseThe interior angles formed by the sides of a quadrilateral have measures that sum to 360.What is the value of x? The Japanese bomber plane used in WWII was called a Japanese Zero. The American bomber plane used in WWII was called a:a). U2b). B-52c). B-17 any help with the questions with the read nothing seems to be working :/ Thank you ! please help with question 1 Cullumber Company incurred the following costs while manufacturing its product. Materials used in product $121,000 Advertising expense $46,000 Depreciation on plant 61,000 Property taxes on plant 15,000 Property taxes on store 7,600 Delivery expense 22,000 Labor costs of assembly-line workers 111,000 Sales commissions 36,000 Factory supplies used 24,000 Salaries paid to sales clerks 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.Required:Compute cost of goods manufactured. Scavenger Huntheard F. Use your answer to card F. to find the nextA12 - x - 2x = -12