Euphrasia, a mixed open economy, was severely affected by a recession that almost paralyzed its service sector. the euphrasian government announced a fiscal stimulus package of $15,000 billion to boost economic growth. gdp of the economy was expected to increase by 2.5 percent during the following year after the implementation of the fiscal stimulus package. however, it was observed that instead of increasing, the gdp of euphrasia actually declined by 0.75 percent that year. which of the following, if true, will explain this outcome? a. a number of public sector enterprises in euphrasia were privatized. b. one of euphrasia's neighboring countries, which is a closed economy, experienced a sudden decline in output and prices. c. the gross saving rate in the economy declined during that year. d. euphrasia's population increased by 4.5 percent that year. e. oil imports declined as countries exporting oil reduced supply.

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.