Answer:
Net Pay $3094.10 is the answer.
Explanation:
Gross pay $4600
Less: Social Security (4600*6.2%) 285.20
Less: FICA (4600*1.45%) 66.70
Less: Federal tax withheld 644
Less: contribution for health insurance 50
Less: contribution for retirement plan (4600*10%) 460
Net Pay $3094.10
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate
That would be known as taxable income
Answer:
The correct answer to the following question is option B) .
Explanation:
Crowding effect refers to a situation where due to the increase in interest, there is a decrease in investment ( private investment spending ), which in turn leads to decrease in initial increase in investment. Here the interest rate have increased because of the expansionary fiscal policy implemented by the government, where they have increased their spending. A high magnitude of crowding effect can lead to decrease in the money supply in economy.
Answer: Option (c) is correct.
Explanation:
Correct Option - An increase in the state of technology.
The aggregate supply curve in the long run is a vertical line and parallel to the y-axis. |t is perfectly inelastic in the long run.
Now, if there is increase in the money supply in the economy then this will increase the aggregate demand in the short run. Hence, aggregate demand curve shift rightwards, as a result real GDP increases in the short run and move beyond the potential level of real GDP.
Also, there is a creation of inflationary gap in the economy, as a result real GDP shifts back to its initial position at potential real GDP. So, there is no increase real GDP in the long run.
Similarly, decrease in interest rates and an increase in government spending will also results in inflationary gap in the economy. Therefore, doesn't affect the real GDP in the long run.
But an increase in the state of technology is capable of increasing real GDP in the long run. Improvement in the state of technology will shift the long run aggregate supply curve rightwards, as result there is an increase in potential GDP in the long run.
