1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kondaur [170]
3 years ago
7

Suppose the economy is currently in long-run equilibrium. The government has just decided to lower income taxes. The long-run im

pact of this policy will be:
Business
1 answer:
MariettaO [177]3 years ago
3 0

Answer:

Slower economic growth

Explanation:

Increasing tax rates can generally and obviously discourage

work because corporations will pay more,

savings, because people earn lesser disposable income,

investment, because firms have lesser profit by paying bigger taxes,

Although specific tax adjustments for certain income categories can assist with the reallocation of economic resources.

But in the long-run economic growth will be slowed down by tax cuts because it will increase deficits by lesser funds being generated for the government over time

You might be interested in
Which conclusion is best supported by the data in the graph?
maria [59]

Technology is a growing part of the US economy.

The four largest manufacturing industries in America are computers and electronics; chemicals; food, beverages, and tobacco; petroleum and coal—account for about 51 percent of manufacturing GDP. The top nine sectors constitute approximately 79 percent of manufacturing GDP. These sectors accounted for 68 percent of total manufacturing employment in 2010.

From the above graph, we can see clearly that the technology sector had increased from $225billion in 2006 to about $360billion in 2011, which is about a 60% increase in a span of 5 years, thats a massive growth within a short period.

8 0
3 years ago
Read 2 more answers
Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge
Ede4ka [16]

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

Cash flow, on the other hand, is the net amount of cash and its equivalents that is transferred inside and outside the company and that may originate in operational, investment or financing activities.

Cash flow will have an operational origin, when there is a net decrease in working capital. In this situation there will be a net cash release that the company can use freely to honor debts, reinvest in operations, pay dividends, cover expenses or provide funds for future investments.

A negative cash flow, from the point of view of operations, implies that the company has increased its cash demands to finance sales on credit or inventory. That is, it has increased its investment in working capital. Situation that will require an analysis that allows a better way to manage capital.

6 0
3 years ago
Land containing a mine having an estimated 1,000,000 tons of economically extractable ore is purchased for $375,000. after the o
Leokris [45]
Should your answr  be a ratio it is 75/375
7 0
3 years ago
________ is the ability of a country to produce a specific good at a lower opportunity cost than its trading partners.
Maslowich
Comparative advantage
3 0
3 years ago
How aggressively should TJX expand globally, and where, and when, to maximize the value of the company shareholders?
Anni [7]
Might have to do some personal research idk who's gonna do a whole project for you but googles a wonderful thing
6 0
3 years ago
Other questions:
  • Which business document is a contract that defines the tasks, time frame, and deliverables that a vendor must perform for a clie
    8·1 answer
  • If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
    8·1 answer
  • An office building owned by Milo was destroyed by Hurricane Mel on September 25, Year 4. On October 2, Year 4, the President of
    5·1 answer
  • Jon is the marketing head at Avion International, an import-export agency. His calendar is filled with: meetings with heads of t
    11·1 answer
  • Patti Company owns 80% of the common stock of Shannon, Inc. In the current year, Patti reports sales of $10,000,000 and cost of
    9·1 answer
  • _____ is defined as the quality of a research report that is based on clear and logical thinking, precise expression, and accura
    11·1 answer
  • A company purchased a 3-acre tract of land for a building site for $480,000. The company demolished the old building at a cost o
    12·1 answer
  • Help please!!
    8·1 answer
  • Worlds of Fun is preparing to open its newest theme park in Shanghai. Once open, the marketing department will be collecting lot
    12·1 answer
  • Which situation best illustrates the effects of inflation?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!