All categories

1 year ago

The tax multiplier equals the change in divided by the change in .

Business

1 answer:

abruzzese [7]1 year ago

6 0

The tax multiplier equals the change in <u>real GDP</u> divided by the change in <u>taxes</u>.

<h3>Define the term tax multiplier?</h3>

A measure of the change in the Gross Domestic Product (GDP) in reaction to a change in governmental taxes is the tax multiplier.

Depending on whether the change in taxes affects all components of the GDP or just consumption, the TM can be simple or complex.
Governments, investors, and economists frequently employ TM to examine the effects of taxation changes on aggregate production.
The straightforward tax multiplier is now more typical.
It suggests that a change in aggregate production like a result of a change in government taxation only affects consumption expenditures.

Thus, the real GDP change divided by the change in taxes is the tax multiplier.

To know more about the tax multiplier, here

brainly.com/question/22936542

#SPJ4

You might be interested in

Prometheus Corp. is a large-scale manufacturer of consumer electronic gadgets. As part of its performance management system, Pro

myrzilka [38]

Answer: Critical success factors (CSFs)

Explanation:

The critical success factor is one of the management element that helps in achieving the organizational main goals and their mission in an organization.

The main aim of the critical success factor is that it helps in evaluating all the key factor in the company for increase the performance and also helps in accomplishing the given task.

According to the given scenario, the Prometheus corporation is one of the large electronic manufacturing firm and each employee of this company contributing in the profits as it is categorized as critical success factor.

Therefore, Critical success factors (CSFs) is the correct answer.

6 0

3 years ago

Rachel is preparing to open her own raft rental business, cleverly named Rachel's Rafts. She figures out that her fixed costs wi

Arisa [49]

Answer:

selling price= $5

Explanation:

Giving the following information:

Fixed cost= $7,500

Unitary variable cost= $2

Break-even point= 2,500 units

<u>The break-even point is the number of units to sell to cover the fixed costs. At this level, net income is zero.</u>

So given the costs structure and 2,500 units to sell, the selling price that provides the break-even point is:

Break-even point in units= fixed costs/ (selling price - unitary variable cost)

2,500 = 7,500 / (selling price - 2)

2,500selling price - 5,000 = 7,500

2,500selling price = 12,500

selling price = 12,500 / 2,500

selling price= $5

7 0

3 years ago

LIFO uses the ______ unit costs for Cost of Goods Sold on the income statement and the ______ unit costs for Inventory on the ba

Tasya [4]

LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).

To learn more about LIFO, please check: brainly.com/question/13779572

3 0

2 years ago

Management is considering replacing its blending equipment. The annual costs of operating the old equipment are $250,000. The an

e-lub [12.9K]

Answer:

$250,000

Explanation:

Since the purchase cost of an old equipment is already incurred and it does not have any kind of impact in decision making so this cost would be considered as the sunk cost i.e. $250,000

The operating cost of old & new equipment would be relevant for calculating the annual cost savings and the current selling value of the old equipment would also be relevant as salvage value

Therefore $250,000 would be considered

5 0

2 years ago

Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P

seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021, $'000

Net Income $5,600

Depreciation 1,900

Other Adjustments (800)

Increase in Accounts Payable 600

Decrease in Accounts Receivable 900

Increase in Inventory (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

#SPJ1

8 0

2 years ago

The tax multiplier equals the change in​ ________ divided by the change in​ ________.

The tax multiplier equals the change in divided by the change in .