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1 year ago

increases in government spending are not very effective in offsetting real shocks because they shift the:

1 answer:

5 0

Increases in government spending are not very effective in offsetting real shocks because they shift the aggregate demand.

<h2>Definition of Aggregate Demand</h2>

Aggregate demand is the value of all requests for all types of goods and services produced in a certain period. The demand value contained in this aggregate will be expressed in terms of the overall value used for these goods and services up to a more specific price level and at a certain time period.

Some things that include aggregate demand are all consumer goods, capital goods used for the production process, import-export activities, and state government spending programs. Each of these variables will be considered the same as long as they are traded at the same market value.

This aggregate demand can also be calculated over a long period of time, which is often referred to as GDP or Gross Domestic demand. If this GDP will describe the total value and also the goods produced, then aggregate demand will represent the desire for goods and services.

Learn more about aggregate demand at brainly.com/question/29349235.

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Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrow

r-ruslan [8.4K]

Answer

The classification is shown below:

Explanation:

The saving refers to the amount i.e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings. While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

So the classification is presented below:

a. Kyoko borrows money to build a new lab for her engineering firm. = Investment

b. Rina purchases stock in Nano Speck, a biotech firm. = saving

c. Musashi takes out a mortgage for a new home in Detroit. = investment

d.Jacques purchases a corporate bond issued by a car company. = saving

6 0

2 years ago

Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense

quester [9]

FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.

4 0

2 years ago

5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal pl

Zigmanuir [339]

Complete Question:

The Company has the following transactions related to its top-selling Mongoose mountain bike for the month of March. The Company uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost

March 1 Beginning inventory 20 $230 $4,600

March 5 Sale ($360 each) 15

March 9 Purchase 10 250 2,500

March 17 Sale ($410 each) 8

March 22 Purchase 10 260 2,600

March 27 Sale ($435 each) 12

March 30 Purchase 8 280 2,240

For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

Required:

a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes

from beginning inventory and eight bikes from the March 22 purchase.

b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)

e. Calculate sales revenue and gross profit under each of the four methods.

Answer:

The Company

Ending Inventory:

a. Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase 2 * $250 = 500

March 22 purchase 2 * $260 = 520

March 30 Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

Cost of goods sold = Cost of goods available for sale Minus Ending Inventory

= $11,940 - $3,490

= $8,450

b. FIFO:

March 22 Purchase 5 260 1,300

March 30 Purchase 8 280 2,240

Ending Inventory 13 $3,540

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $3,540

= $8,400

c. LIFO:

Ending Inventory:

March 1 Inventory 13 $230 $2,990

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $2,990

= $8,950

d) Weighted -Average Cost:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

Specific FIFO LIFO Weighted

Identification Average

Sales $13,900 $13,900 $13,900 $13,900.00

Cost of goods sold 8,450 8,400 8,950 $8,706.25

Gross profit $5,450 $5,500 $4,950 $5,193.75

Explanation:

Dat and Calculations:

Shop uses periodic inventory system

Date Transactions Units Unit Cost Total Cost Total

March 1 Beginning inventory 20 $230 $4,600 Sales

March 5 Sale ($360 each) 15 $360 $5,400

March 9 Purchase 10 250 2,500

March 17 Sale ($410 each) 8 $410 $3,280

March 22 Purchase 10 260 2,600

March 27 Sale ($435 each) 12 $435 $5,220

March 30 Purchase 8 280 2,240

Total Goods available for sale 48 35 $11,940 $13,900

Ending Inventory = 13 (48 - 35)

Weighted average cost = Cost of goods available for sale/Units of Goods available for sale

= $11,940/48 = $248.75

Specific Identification:

March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1

March 17 sale 8 consists of bikes from the March 9 purchase Bal = 2

March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal = 2

Ending Inventory:

Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase 2 * $250 = 500

March 22 purchase 2 * $260 = 520

March 30 Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

FIFO:

March 22 Purchase 5 260 1,300

March 30 Purchase 8 280 2,240

Ending Inventory 13 $3,540

LIFO:

March 1 Beginning inventory 13 $230 $2,990

Weighted-Average Costs:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

5 0

2 years ago

Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares a

Alina [70]

Answer:

d. Debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200

Explanation:

allowance balance 2,300 debit

estimated uncollectible accounts 31,900 credit

adjustment needed 34,200 credit

We need to adjust the allowance to our estimated uncollectible account. Currently, it has 2,300 debit balance. We need to increase it to 31,900

If we think it in two steps:

We need to credit by 2,300 to have zero balance,

and then 31,900 to reach the expected uncollectible amount

in total a credit for 34,200 needs to be done

<u>The adjusting entry will be:</u>

bad debt expense 34,200 debit

allowance for doubtful accounts 34,200 credit

8 0

2 years ago

Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of po

Natasha2012 [34]

Answer:

11.67 years

Explanation:

The rule of 70 requires that in determining when the economy growth rate will double its current growth rate, the appropriate thing to do is divide 70 by the current growth rate of 6% per year.

The economy's growth rate of 6% has its percentage ignored when the calculation is carried out.

=70/6= 11.67

The current economy's growth rate would double in 11.67 years' time

8 0

2 years ago