Suppose that real gdp is currently $ 13.8 trillion and potential real gdp is $ 14.0 trillion, or a gap of $ 200 billion. the government purchases, multiplier is 5.0, and the tax multiplier is 4.0

holding other factors constant, by how much will government purchases need to be increased to bring the economy to equilibrium at potential gdp?

1.government spending will need to be increased by $ billion (enter your response rounded to the nearest whole number).

2. holding other factors constant, by how much will taxes have to be cut to bring the economy to equilibrium at potential gdp?

taxes will need to be cut by $ billion (enter your response rounded to the nearest whole number).

The following pertains to smoke, inc.’s investment in debt securities: on december 31, year 3, smoke reclassified a security acquired during the year for $70,000. it had a $50,000 fair value when it was reclassified from trading to available-for-sale. an available-for-sale security costing $75,000, written down to $30,000 in year 2 because of an other-than-temporary impairment of fair value, had a $60,000 fair value on december 31, year 3. what is the net effect of the above items on smoke’s net income for the year ended december 31, year 3?

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false