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2 years ago

If the government wants to expand aggregate demand, it can government purchases or taxes.

Business

1 answer:

Jobisdone [24]2 years ago

3 0

If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.

<h3>What is aggregate demand?</h3>

The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.

Some characteristics of aggregate demand are-

The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
The correlation between output and all prices can be seen on an aggregate demand curve.
In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.
Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand.
When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.

To know more about the aggregate demand and aggregate supply model, here

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3 years ago

Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,638. The

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Answer:

Net Pay = Gross Pay - Federal Income Tax - FICA-SS Tax - FICA-Medicare Tax

Net Pay = $8,260.00 - $1,325.17- $512.12 - $119.77* = $6,302.94

Explanation:

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3 years ago

The Most recent financial statements for Moose Tours, Inc., appear below. Sales for 2016 are projected to grow by 20 percent. In

Aneli [31]

Answer:

$5,006.07

Explanation:

The external financing needed = Projected Increase in Assets - Increase in Liabilities - Increase in Retained Earnings

Projected Increase in Asset = Assets Value*Sales Growth Rate

Projected Increase in Assets = $364,720 * 20%

Projected Increase in Assets = $72,944

Increase in Liabilities = Liabilities * Sales Growth Rate

Increase in Liabilities = $69,600 * 20%

Increase in Liabilities = $13,920

<em>To calculate the Increase in Retained Earning, the below calculations are needed:</em>

a. Profit Margin Rate = Net Income / Sales * 100

Profit Margin Rate = 75,000 / 751,000 * 100

Profit Margin Rate = 9.99%

b. Dividend Payout Ratio = Dividend / Net Income * 100

Dividend Payout Ratio = 30,000 / 75,000 * 100

Dividend Payout Ratio = 0.4

Dividend Payout Ratio = 40%

Retention Rate = 1 - Dividend Payout Ratio

Retention Rate = 1 - 0.40

Retention Rate = 0.60

Retention Rate = 60%

c. Expected Sales = $751,000 * 1.20 = $901,200

So, the Increase in Retained Earning = Expected Sales * Profit Margin * Retention Rate = $901,200 *9.99% * 60% = $54,017.93

Therefore, External Fund Needed = $72,944 - $13,920 - $54,017.93 = $5,006.07

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3 years ago

Nothing nothing nothing

Bingel [31]

Answer:

woah nothing indeed lol

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3 years ago

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3 years ago

If the government wants to expand aggregate demand, it can ________ government purchases or ________ taxes.

If the government wants to expand aggregate demand, it can government purchases or taxes.