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If full employment in this economy is 130 million will there be an inflationary expenditure gap or a recessionary gap What will be the consequence of this gap By how much would aggregate expenditures?
Wiki User
∙ 14y ago
A recessionary gap. Equilibrium GDP is $600 billion, while full employment GDP is $700 billion. Employment will be 20 million less than at full employment. Aggregate expenditures would have to increase by $20 billion (= $700 billion -$680 billion) at each level of GDP to eliminate the recessionary gap. The MPC is .8, so the multiplier is 5.
Wiki User
∙ 14y ago
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What is the plural of the word expenditure?
The plural of the word expenditure is expenditures. As in "the wikianswers expenditures is getting out of control".
What types of expenditure?
There are 2 types of expenditures: capital expenditure (long-term assets like machinery) and revenue expenditure (raw material).
What is recurrent expenditures?
In a short and comprehensive way of my own understanding recurrent expenditure can be define as an expenditure that occurred after the existing expenditure had already be made for that year
What results when expenditures exceed revenue?
A deficit is the result when expenditure exceeds revenue.
How is the expenditures approach used to calculate it?
The expenditure approach calculates GDP by summing the four possible types of expenditures as follows:GDP=Consumption etc.
What is the plural of the word expenditure?
The plural of the word expenditure is expenditures. As in "the wikianswers expenditures is getting out of control".
Why it is important to distinguish capital expenditures from revenue expenditures for tax purpose?
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
Why capital expenditures are difference from normal day to day expenditure?
why capital expenditure are difference from normal day to day expenditure
Can expenditure incurred for defence of title of a capital asset be treated as capital expenditure?
Introduction expenditures
What is the plural form of development expenditure?
The plural form for the noun phrase 'development expenditure' is development expenditures.
What are the expenditures of the Philippines' government?
the Philippine expenditure is very high!
What types of expenditure?
There are 2 types of expenditures: capital expenditure (long-term assets like machinery) and revenue expenditure (raw material).
Is salaries a recurrent expenditure?
Salaries are require to be paid every month so it is a recurrent expenditure of business and called the revenue expenditures.
What is recurrent expenditures?
In a short and comprehensive way of my own understanding recurrent expenditure can be define as an expenditure that occurred after the existing expenditure had already be made for that year
Which expenditures was greater than the expenditure on health?
B) Income security
What capital expenditure mean?
Capital expenditures are those expenditures which will provide benefits to the business for more than one fiscal year.
What results when expenditures exceed revenue?
A deficit is the result when expenditure exceeds revenue.
