A manufacturing company is producing $4,000,000 worth of goods this year and expects to sell $4,100,000....

A manufacturing company is producing $4,000,000 worth of goods this year and expects to sell $4,100,000. The firm actually sells $3,900,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $400,000 in inventory in its warehouse. Answer the following based on the information above and show all your work:

f) Calculate Y
g) Calculate E
h) Based on your answers above, should the government follow expansionary or contractionary policies and what kinds? Why?

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Expert Solution

Rahul Sunny answered 1 year ago

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