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sdas [7]
3 years ago
14

In an economy where planned aggregate spending is given by PAE = 5,500 + 0.6Y - 20,000r, the interest rate is currently 5 percen

t (0.05). If potential output equals 11,750, the central bank must ______ the interest rate to close the ____________ gap. reduce; expansionary reduce; recessionary raise; recessionary raise; expansionary
Business
1 answer:
svlad2 [7]3 years ago
8 0

Answer:

Reduce; Recessionary

Explanation:

We need to emphasize the fact that fiscal policy is the use of government spending and tax policy to alter economy.

A recessionary gap can be defined as a microeconomic term which describes an economy operating at a level below its full employment equilibrium. Under a recessionary gap condition, the level of real gross domestic product GDP is lower than the level of full employment, which puts downwards pressure on prices in the long run.

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Briefly explain how the government uses taxation as a redistribution method
crimeas [40]

Answer:

The purpose of this is to increase economic stability.

8 0
3 years ago
A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually
neonofarm [45]

Answer:

4, 1, 2,

Explanation:

Here are the projects and their returns

Project Return (%)

1 14

2 12

3 10

4 15

5            12

the firm should choose the project with the highest returns

Projects are mutually exclusive if the projects cannot occur at the same time. If one project is chosen, the others cannot be chosen.

Project 3,4,5 are mutually exclusive. If one of the projects are chosen, other projects cannot be chosen.

Project 4 has the highest return, so it would be chosen first.

the next project with the next highest return is project 1 and then project 2

3 0
3 years ago
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy camer
Viefleur [7K]

Answer:

Product cost are cost incurred in the manufacturing of a product while period cost are cost incurred for a period irrespective of the manufacturing activity.

1. Depreciation on salespersons cars.

Classification: Period cost

2. Rent on equipment used in the factory.

Classification: Product cost

3. Lubricants used for machine maintenance.

Classification: Product cost

4. Salaries of personnel who work in the finished goods warehouse.

Classification: Period cost

5. Soap and paper towels used by factory workers at the end of a shift.

Classification: Product cost

6. Factory supervisors salaries.

Classification: Product cost

7. Heat, water, and power consumed in the factory.

Classification: Product cost

8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)

Classification: Period cost

9. Advertising costs.

Classification: Period cost

10. Workers compensation insurance for factory employees.

Classification: Product cost

11. Depreciation on chairs and tables in the factory lunchroom.

Classification: Product cost

12. The wages of the receptionist in the administrative offices.

Classification: Period cost

13. Cost of leasing the corporate jet used by the company as executives.

Classification: Period cost

14. The cost of renting rooms at a Florida resort for the annual sales conference.

Classification: Period cost

15. The cost of packaging the company as product.

Classification: Product cost

3 0
3 years ago
Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in which of the following circumst
Katarina [22]

Answer:

B. 1 and 2.

Explanation:

Life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.

A decedent refers to a deceased person who is no longer able to control his or her properties (wealth).

Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.

This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.

Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in the following circumstances:

I. The decedent gave the policy to his father four years ago, but retained the right to change the name of the beneficiary.

II. The policy beneficiary is a grantor trust of the decedent but the policy is owned by a closely-held corporation.

8 0
3 years ago
Oann and mark, a white american couple, are planning to purchase a home in the next year or so. they approve of residential inte
BaLLatris [955]
Hmmm not sure exactly what you are asking the wording is strange but this seems to be showing Racism towards blacks.
8 0
3 years ago
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