Unification of east and west germany
Answer:
An activity-based approach refines a costing system by focusing on individual activities as the fundamental cost objects. It uses the cost of these activities as the basis for assigning cost objects such as products or services.
Explanation:
This is a costing system that works by allocating costs to different cost items based on the activity level of these items. This as opposed to traditional costing methods, assigns indirect or overhead cost to products or services less arbitrarily through identifying products or services with most activity or less activity and allocating costs to them based on this measurement.
Answer:
The result would likely be a contraction of the economy. The GDP would probably fall or grow less.
A goverment applies contractionary fiscal policy when it reduces spending. Less government spending can reduce economic activity because spending can be a form of investment. For example, when the government spend less on building schools, roads and infraestructure, the people who build those lose their jobs, receive less income, consume less, and the economy contracts.
Contractionary monetary policy is applied by the central bank (the Federal Reserve in the United States). It would consist in reducing the amount of money available (the money supply). Less money in the economy results in higher interest rates. This creates a cycle in which banks give less loans, and investment falls. Less investment contracts the economy.
