If a nation's government implements contractionary fiscal policy, what will likely be the effect on the price level and output in the economy? Explain your reasoning.
Aggregate Demand= Consumption + Investment + Government Spending + Net Exports If government spending decreases then, all else constant, aggregate demand will decrease. Firms will lower prices in response to the decrease in demand and, since lower prices means lower profitability per unit, they will decrease their output as well.
Adam's car averages 30 miles per gallon. If gas costs $4/per gallon, how many miles can he travel using $60 worth of gas?
$60/$4 = 15 15 * 30= 450 Adam can travel 450 miles.
Marcus has 12 more apples than Ethan. Ethan has twice as many apples as Natalie. If Natalie has 6 apples, how many apples does Marcus have?
m = e +12 e = 2n n = 6 e = 2(6) = 12 m = (12) + 12 = 24 Marcus has 24 apples.