<u>Answer:</u> it can be concluded that fiscal policy from year 1 to year 2 became more expansionary.
<u>Explanation:</u>
When the fiscal policy becomes expansionary the government will decrease the taxes and increase its spending in order to reduce the recessionary situation in the country. In the above scenario budget deficit means the expenditure is more than the revenue.
A cyclical budget deficit means the deficit which occurs due to decrease in tax rates and increase in government spending. Increasing the taxes and government spending would both offset the balance in the economy.
Answer:
a. As a result of this policy the Clinton corporation will loss the contribution margin
Contribution Margin = (Selling price – variable cost) * Number of units
= (95 – 88) * 10,000
= $77,000
b.The cost incurred by Clinton corporation by following this policy is Opportunity cost which is cost of forgone opportunity.
Opportunity cost = (Outside selling price – variable cost ) Number of units
=(133 – 88) * 10,000
= $450,000.
Answer:
Please see explanation
Explanation:
My take home salary when i was making $38,000 is given below:
Take home salary=$38,000*88%=$33,440
My take home salary when i will be making $43,000(38,000+5,000) for new role is given below:
Take home salary=$43,000*84%=$36,120
So the increase in my salary is $2,680 (36,120-33,440) due to new job and raise and therefore i should accept it.
Answer:
private saving would rise and national saving falls
Explanation:
private saving is income - consumptiioon= Y-C
if consumption c falls, private saving is going ton rise
public saving is T-G
as G goes up, T-G which is public saving would reduce or fall.
Given that the fall in c is smaller than the rise in G, the rise in private saving would smaller than the fall in public saving.
national saving is change in private saving + change in public saving
given that change in private saving is less than that of public saving, national saving would be negative.
Answer:
the price that can be affordable for every one and it should be by the opinion of the common people and labours
