Suppose the economy's multiplier is 2. other things equal, a $25 billion decrease in government expenditures on national defense will cause equilibrium gdp to: a. decrease by $50 billion. b. decrease by $150 billion. c. remain unchanged since spending on military goods is unproductive and usually wasteful. d. decrease by $25 billion.

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: