Answer:
The correct answer is option D.
Explanation:
The equilibrium price of a pound of bacon is $3.50.
In order to protect the consumers, the government imposes a binding price ceiling of $1.50.
This price ceiling will create a shortage of bacon or an excess demand for bacon in the market.
Because of the law of demand and law of supply, at price lower than the equilibrium price, the quantity demanded will be higher while the quantity supplied will be lower.
This difference between quantity demanded and quantity supplied will create an excess demand in the market.
The first of two significant fiscal policy initiatives enacted by the government during the great recession, signed in February 2008 by President George w. bush was the Economic Stimulus Act of 2008.
During recessions, governments can adopt expansionary fiscal policies by lowering tax rates to boost aggregate demand and boost economic growth. In the face of rising inflation or other signs of economic expansion, governments can pursue contractionary fiscal policies.
Governments can use fiscal policy (increased government spending and tax cuts) to stimulate the economy during recessions. A fiscal multiplier is an estimate of the increase in output caused by a particular increase in government spending or tax cuts.
Learn more about fiscal policy at
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Answer:
(1) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better.
Explanation:
Monetary Policy is the instrument by which the Central Bank conducts the economy. The debate over monetary policy is basically divided into two groups. Monetarists who believe that monetary policy should be used only to maintain price stability - contain inflation. On the other hand, monetary policy activists argue that, in addition to containing inflation, monetary policy is a powerful instrument that can be used to influence the economy in other sectors, for example in stimulating job creation. This would make monetary policy an instrument designed to address particularities of the economic system.
Answer:
See below
Explanation:
Given the above information, the average debtor days is computed as seen below.
= Total receivables / Credit sales × 365
Total receivables = $246,000
Credit sales $2,430,000
Then,
Average debtor days
= $246,000 / $2,430,000 × 365
= 36.95 days
Hence, it would take 36.95 days on the average for credit customers to pay off their debts during this past year
