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
meriva
3 years ago
12

If the structural budget deficit is $100 billion and the actual deficit is $300 billion, what is the size of the cyclical defici

t?
Business
1 answer:
IceJOKER [234]3 years ago
7 0
Cyclical deficit is the downfall of the business cycle, this usually occurs when the economy is beneath potential income. The formula for this is, CD= tax rate x ( potential deficit - actual deficit). Therefore, the cyclical deficit is $200.  I hope this helps.
You might be interested in
Microhard has issued a bond with the following characteristics:
Aleks [24]

Answer:

At Yield to maturity = 11%

Price = $1,000

Explanation:

As for the provided information we have:

Par value = $1,000

Interest each year = $1,000 \times 11% = $110

Effective interest rate semiannually = 11%/2 = 5.5% = 0.055

Since it is paid semiannually, interest for each single payment = $110 \times 0.5 = $55 for each payment.

Time = 8 years, again for this since payments are semi annual, effective duration = 16

Price of the bond = C \times \frac{(1 - \frac{1}{(1+i^n)}) }{i} + \frac{M}{(1 + i)^n}

Here, C = Coupon payment = $55

i = 0.055

n = Time period = 16

M = Maturity value = Par value = $1,000

Therefore, if yield to maturity = 11% then,

P = 55 \times \frac{1 - \frac{1}{(1 + 0.055)^1^6} }{0.55} + \frac{1,000}{(1 + 0.55)^1^6}

= $1,000

7 0
3 years ago
True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trad
solniwko [45]

"Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles" is FALSE.

<u>Option:</u> B

<u>Explanation:</u>

Specialization refers to countries' propensity to focus in certain items they exchange for other commodities, rather than to manufacture all the consumer goods on their own. As the PPF production possibilities frontier displays that production is impractical, Freedonia and Lamponia had to engage in international trade.

Both countries are able to consume the goods they produce.When a country is skilled in manufacturing a good, it can manufacture this good at a lower cost of opportunity than its trading nation. For this comparative advantage, both countries benefit from competing and trading with one another.

7 0
3 years ago
Grace, James, Helen, and Charles each own equal interests in GJHC Partnership, a calendar-year-end, cash-method entity. On Janua
Sloan [31]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

3 0
3 years ago
If the month-end bank statement shows a balance of $36,000, outstanding checks are $10,000, a deposit of $4,000 was in transit a
Misha Larkins [42]

Answer:

c) $30,600

Explanation:

Bank statement balance = $36,000

Outstanding checks = ($10,000)

Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

                                                             = $30,600

The right option is c) $30,600

3 0
3 years ago
Explain why a $ 50,000 increase in inventory during the year must be included in developing cash flows from operating activities
Simora [160]

Explain why a $50,000 increase in inventory during the year must be included in computing cash flows from operating activities under both the direct and indirect methods. The $50,000 increase in inventory must be used in the statement of cash flow calculations because it increases the outflow of cash (all else equal).

An increase in the company's inventory indicates that the company has purchased more goods than it has sold. It means an additional cash outflow as cash must be used to purchase additional consumables. Cash outflows have a negative or unfavorable impact on a company's cash position.

Therefore, as inventories increase, the company will have to spend money to buy them (cash outflow). On the other hand, the decrease in inventory will be cash in for the amount sold. We arrive at the following rule: Inventory Increase => Cash Outflow (Negative)

An indirect way to create a cash flow statement is the change in the amount of cash due to operating activities in the account on the balance sheet. and adjust the net profit for the year.

Learn more about inventory here;

brainly.com/question/24868116

#SPJ4

5 0
2 years ago
Other questions:
  • Booth's fixed assets were used to only 50% of capacity during 2018, but its current assets were at their proper levels in relati
    8·1 answer
  • Borrowing money to pay for expensive items like student loans and home mortgages with the intent to pay it back in fixed monthly
    11·2 answers
  • The ________ of focus group participants should be judged against the target market profile to assess to what degree the groups
    6·2 answers
  • The following are insured for medical payments under a Personal Auto Policy (PAP):
    5·1 answer
  • In the context of skills of successful managers, making sacrifices to encourage and promote desired outcomes in an organization
    7·1 answer
  • You are thinking of investing in Ski Sports, Inc. You have only the following information on the firm at year-end 2018: net inco
    9·1 answer
  • Is shift work involved in electrician?
    8·1 answer
  • Derick wants to purchase an existing business in the service industry. However, he does not want to use the traditional sources
    11·2 answers
  • A product in the __________ stage of the product life cycle has a high number of competitors and competitive products.
    12·1 answer
  • Logan, a 50% shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations wit
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!