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nalin [4]
2 years ago
9

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible p

olicy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue What is a likely consequence of this policy? Unemployment falls due to the economic stimulus. The negative consequences of the recession are magnified. Consumer spending increases due to their ability to keep more of their after-tax income. There is hyperinflation due to an increase in aggregate demand.
Business
2 answers:
nika2105 [10]2 years ago
7 0

Answer:

The correct answer is: cut spending equal to the reduction in tax revenue.

The correct answer is: The negative consequences of the recession are magnified.

Explanation:

Recession is likely to cause a reduction in the aggregate demand, consumer income, and spending will decrease as well. As a result, the tax revenue to the government will fall as well.

A balanced budget means that government expenditures should be equal to revenue. So if the government wants to have a balanced budget it needs to reduce its spending by the same amount as the reduction in the tax earnings.

This will lead to a reduction in the aggregate demand further magnifying the effects of the recession.

docker41 [41]2 years ago
3 0

Answer:

The correct answer is: cut spending equal to the reduction in tax revenue.

Explanation:

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dupe's age and olu's add upto 25 years. Eight years ago , dupe was twice as old as olu. how old are they now?​
Bas_tet [7]

Dupe's present age = 14 years

Olu's present age = 11 years

Explanation:

  • Let Dupe's age be x. Let Olu's age be y. Since their ages add up to 25 years, x + y = 25
  • Eight years ago Dupe's age was double that of Olu's age. Solving by simultaneous equations. Four methods are Elimination Method, Graphical Method, Substitution Method, and    Matrix Method. Let us try out Elimination method for solving a pair of simultaneous linear equations that reduces one equation to one that has only a single variable. Once this has been done, the solution is the same as that for when one line was vertical or parallel.
  • Therefore, eight years ago, Dupe's age was 6 and Olu's age was 3 so that x=2y becomes, 6=2*3. Eight years hence, x=6+8=14 and y=3+8=11. That makes, x or Dupe's age as 14 years and y or Olu's age as 11 years.  
6 0
3 years ago
The strategy of setting a single price for two or more units is known as
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Is known as multiple- unit pricing.
8 0
3 years ago
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You manage an equity fund with an expected risk premium of 10.2% and a standard deviation of 16%. The rate on Treasury bills is
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6 0
2 years ago
______________ specifies sales revenues and selling distribution and marketing costs.
frez [133]
To answer the question above as the which specifies the sales revenue and selling distribution and marketing costs is letter B, Sales budget. The answer lies in the question itself. Sales revenues,distribution and the marketing cost are all related to the sales budget. Sales budget controls the expenditure or resources related to sales.
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2 years ago
In a company's standard costing system, direct labor-hours are used as the base for applying variable manufacturing overhead cos
BARSIC [14]

Answer:

From this information one can conclude that last period the variable overhead efficiency (quantity) variance was <u>unfavorable.</u>

Explanation:

The variable overhead efficiency variance measures the difference between the actual and budgeted hours worked with respect to standard variable overhead rate per hour.

Variable overhead efficiency variance can be calculated thus:

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