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3 years ago

Fiscal policy is more effective in affecting economic activity if: ___________.

Business

1 answer:

ch4aika [34]3 years ago

4 0

Answer:

b) there is a real shock instead of an aggregate demand shock.

Explanation:

Fiscal policy is the process of influencing economic activities by way of taxation and government spending.

Fiscal policy is most effective in dealing with deep recession or an economic situation characterised by a consistent fall in gross domestic product(GDP) for over two quarters.

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If a firm's expected sales are $264,000 and its break-even sales are $197,000, the margin of safety in dollars is:

pychu [463]

Assuming the firm's expected sales are $264,000 in which the firm break-even sales are $197,000, the margin of safety in dollars is:$67,000.

<h3>Margin of safety in dollars</h3>

Using this formula

Margin of safety in dollars=Expected sales-Break-even sales

Where:

Expected sales=$264,000

Break-even sales=$197,000

Let plug in the formula

Margin of safety in dollars=$264,000-$197,000

Margin of safety in dollars=$67,000

Inconclusion the margin of safety in dollars is: $67,000.

Learn more about margin of safety in dollars here:brainly.com/question/15190495

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2 years ago

Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby

Drupady [299]

Answer:

Answer:

1.) Overhead Absorption rate= $30 per hour

2) Absorbed overhead= $70,500

Over-absorbed overhead=$4700

3) Journal entry:

Debit Manufacturing overhead expense $4,700

Credit Cost of goods sold $4,700

Explanation:

Overhead Absorption rate = Budgeted overhead /Budgeted labour hours

= 72,000 /2,400 hours = $30 per hour

Absorbed overhead = OAR × Actual labour hours

=$30 × 2350 = $70,500

Over-absorbed overhead = Absorbed overhead - Actual overhead

= $70,500 - $65,800 = $4700

Journal entry:

Debit Manufacturing overhead expense $4,700

Credit Cost of goods sold $4,700

Answer:

Overhead Absorption rate= $30 per hour

Absorbed overhead= $70,500

Over-absorbed overhead=$4700

Journal entry:

Debit Manufacturing overhead expense $4,700

Credit Cost of goods sold $4,700

3 0

4 years ago

When products and services are produced or provided, which function is responsible for ensuring that those products and services

Anvisha [2.4K]

Answer:

The function that is responsible for ensuring that those products and services meet high quality standards are the OPERATIONS

Explanation:

Operations management is the business function which is responsible for managing the process of creation and coordination of goods and services. It involves planning, organizing, coordinating and controlling all the resources needed to produce a company goods and services. And it also ensures that products and services meet high quality standards.

5 0

4 years ago

Give two examples of unethical behavior for each of these areas: inspection, process control, process capability. For each, name

artcher [175]

Action that falls outside of a conciderde

4 0

4 years ago

Suppose a newly elected president cuts taxes by 20 percent: i. Assuming that the money supply is held constant, what are the new

Papessa [141]

Answer: hello your question has some missing information below is the missing information

An economy is initially described by the following equations:

C = 80 + 0.8(Y – T)

I = 120 –5r

M/P = Y – 25r

G = 100

T = 100

M = 2,700

P = 3

answer :

equilibrium interest rate ( r ) = 5.6%

equilibrium level of income = 1040

Explanation:

<u>a) New equilibrium interest rate </u>

T = 100 - 20/100 ( 100 ) = 80

Y = C + I + G

= 80 + 0.8( y - 80 ) + 120 - 5r + 100

= 236 + 0.8y - 5r

y = 1180 - 25r ------ ( 1 )

M/P = Y - 25r = 2700 / 3

y = 900 + 25r ------- ( 2 )

equate; equation ( 1 ) and equation ( 2 )

1180 - 25r = 900 + 25r

∴ r = 5.6%

<u>b) Equilibrium level of Income </u>

To determine Equilibrium level of income we will use equation2

Y = 900 + 25(5.6) = 1040

5 0

3 years ago