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nalin [4]
3 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]3 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]3 years ago
3 0

Answer:

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

Explanation:

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I believe this saying refers to how we need challenges in our lives so that we can experience failure and learn from it.

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Steve wanted to open a day care service facility for dogs. He estimated the costs involved in providing the services desired by
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Business analysis.

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Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $
Ne4ueva [31]

Answer:

Average rate of return =  14 %

Explanation:

Average rate of return = Annual average return/ Average Investment

Average investment =( Initial investment + scrap value)/2

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6 0
3 years ago
Consider the following accounting terms and definitions and match each term to the definition: Accounting a. an economic resourc
spayn [35]
<h2><u>Answer:  </u></h2>

<u>Accounting</u>:

The basic tool of accounting, stated as asset=liabilities + equity (e)  

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An economic resource that is expected to be of benefit in the future (a)

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Reports on an entity’s assets, liabilities, and stockholders’ equity as of a specific date (I)

<u>Expense:</u>

Decreases in equity that occur in the course of selling goods/services (f)

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Reports on an entity’s revenues, expenses, and net income or loss for the period (j)

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8 0
3 years ago
Read 2 more answers
Ben says that "an increase in the tax on beer will raise its price." Holly argues that "taxes should be increased on beer becaus
Grace [21]

Answer:

B. Holly's statement is normative, but Ben's is positive.

Explanation:

Positive statements are based on objective deduction of what is, or was. It is based on facts. Ben's comment "an increase in the tax on beer will raise its price", is an example of positive statement.

Normative statements are subjective and based on individual values and judgement. In her statement Holly appears to be biased against drinking much. She says "taxes should be increased on beer because college students drink too much." Is a normative statement.

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