<u>PART A:</u>
The government has voted for budget neutral tax cut policy in order to avoid the enhancement in the deficit. Thereby, government spending will be reduced by an amount of $8 billion.
<u>PART B:</u>
The calculation for fall in GDP is as follows:

Multiply with change in government expenditure,

Thus, if the government expense is reduced by $8 billion then fall in GDP is by $53.33 billion
<u>EFFECT ON GDP DUE TO REDUCTION OF TAX:</u>

Multiply with change in tax,

Thus, when the taxes are reduced by $8 billion, then GDP shows an increase by $45.33 billion.
Therefore, change in equilibrium level of real GDP = -$8 billion ( -53.33 billion + 45.33 billion).
Answer:
Regional Products
Explanation:
According to the UCC where place of delivery is not specified in a transaction, the place of delivery of the goods will be at the seller's place of business.
This will help with inspection, where the buyer has an opportunity to inspect the goods and either accept or reject before transportation cost is incurred.
The city bus system charges lower fares to senior citizens than to other passengers. Assuming that this pricing strategy increases the profits of the bus system, we can conclude that senior citizens must have a(n) <u>More elastic Demand </u>for bus service than other passengers.
Explanation:
Elasticity of demand defines relationship between the change in price and the purchases made by the consumer .
In case with the increase or decrease of the price the purchasing habit of the consumer remains the same then we say that the good has inelastic demand .
In case the consumer changes its purchasing habits with the change in price of the product or service then we say that the good /service has elastic demand.
In the question we can see that the bus service provider have changed the price of the tickets(reduce the price of the ticket) for senior citizens ,so we can say that the with the change in the price of the tickets the demand for the tickets by senior citizen must have increased .<u>Hence it is a example of Elastic demand.</u>
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Answer:
No, Kamal's father, Mr.Kishanlal is not justified in his point of view because although it is true that money is needed to start a new business but money is not that much necessary as many other things. To start a new business and make it a success, passion, new idea and determination is much needed. If you are passionate to start something new and provide people value then it will be very easy to become successful. You should have a new idea to start a business. You should provide people with ease with the help of your new idea and new product or service. People will definitely but your products and services if it is something of value. You should have an urge to be determinant. There are many entrepreneurs, who have not much money when they started a business, but with their passion and handwork they became successful i,e, Jeff Bozos, Bill Gates, Steve Jobs etc.
Answer:
Production budget for First quarter= 16,500 units
Explanation:
<em>The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>
Production = Sales volume + closing inventory - opening inventory
Closing inventory = 20% × second quarter sales
= 20% × 20,000 = 4,000 units
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<em>Production budget for the first quarter</em>
=17,000 + 4000 -4500
= 16,500 units