When raising prices they need to be careful because it may drive customers away and when lowering them they need to make sure they are still making profits.
Based on the economic data given, and the fact that the government is running a deficit, the equilibrium GDP will be 336.67.
If government spending is cut to balance the budget, the new level of GDP will be 321.67.
The effect of balancing the budget will be a decrease in GDP and a slower recovery from the recesssion.
<h3>What is the equilibrium GDP?</h3>
This is given by the variable "Y" so we can find the equilibrium GDP by solving for it:
C = 50 + .7(Y – T)
Y = C + I + G - XN
C = Y - I - G + XN
Solving gives:
Y - I - G + XN = 50 + .7(Y – T)
Y - 40 - 35 + 10 = 50 + 0.7Y - 14
Y - 0.7Y = 50 + 40 + 35 - 10 - 14
0.3Y = 101
Y = 101/0.3
= 336.67
<h3>What is the new GDP if government spending is cut?</h3>
Government spending will have to be cut to a size that would make it equal to taxes so government spending becomes 20.
New GDP becomes:
= C + I + G - XN
= ( 50 + .7(Y – T)) + 40 + 20 - 10
= 271.67 + 40 + 20 - 10
= 321.67
Find out more on GDP at brainly.com/question/1384502.
Answer:
<em>1. Washburn is not required to make any accounting adjustments.</em>
Explanation:
<em>The treatment which will be appropriate for the accounting will be that the </em><em>Washburn will not require to make any accounting.</em>
Because Washburn has already spent lots of money in purchasing the new technology, and we can see that the company is using a straight-line basis. In straight-line basis, it comes from a division of the cost of asset's difference and its value that is been expected.
So if the company has used straight-line basis then the company has already calculated the amount and the company will not require to make any accounting.
Answer:
Concept Development
Explanation:
The stages which a product cycles through during its lifespan are:
1. Concept Development,
2. Introduction,
3. Growth,
4. Maturity and
5. Decline.
The Product Concept Development stage is the <u>first part of the Product Life Cycle which involves developing the product concept,</u> building the product and testing the product.
A C. financial manager's job includes forecasting, budgeting, cash flow analysis, cost control, taxes, and credit management. <span>Financial managers examine the financial data prepared by accountants and make recommendations to top executives regarding strategies for improving firm performance. They manage the firm's taxes, cash, credit accounts, and inventory.</span>