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Paladinen [302]
3 years ago
14

Consider the economies of Macmillana and Bloedelo, which are identical except that the multiplier in Macmillana is smaller than

that in Bloedelo. This means that Macmillana's GDP is Bloedelo's GDP to fluctuations in the components of total spending. Features of the economy that reduce its sensitivity to shocks are called automatic stabilizers. Suppose again that the economies of Macmillana and Bloedelo are identical except that Macmillana has instituted a system of unemployment insurance, whereas Bloedelo hasn't. Macmillana's economy is sensitive to fluctuations in GDP than Bloedelo's economy. This is because the system of unemployment insurance has Macmillana's multiplier.
Business
1 answer:
GrogVix [38]3 years ago
3 0

Answer:

Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:

1) The keynesian multiplier is smaller.

The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.

2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.

Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.

Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.

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A company had net income of $200,000 and paid dividends to common stockholders of $50,000 in 2022. The weighted average number o
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25 percent.

Explanation:

Given that,

Net Income =$200,000

Paid dividends to common stockholders = $50,000

Weighted average number of shares outstanding in 2022 = 2,000 shares

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Which of the following best defines tangible products? They refer to the physical entities or services that are offered to a buy
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Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follow
Amanda [17]

Answer:

<u>Budgeted functional income statement for 2015</u>

Gross sales ($2,000,000  × 1.04 × 1.06)                                       $2,204,800

Less: Estimated uncollectible accounts ($2,204,800 × 2 %)         ($44,096)

Net sales                                                                                        $2,160,704

Cost of goods sold (1,100,000 × 1.03)                                          ($1,133,000)

Gross profit                                                                                     $1,027,704

Operating expenses (475,000 × 1.10)                                            ($522,500)

Depreciation                                                                                     ($25,000)

Net income                                                                                       $480,204

Explanation:

Make the adjustments stated on the 2014 Income Statement.

For Operating Expenses, it is wise to first remove the depreciation expense and apply the increment of 10% to reflect Operating Costs for 2015.

Treat Depreciation Expense separately and at the same amount as for 2014, since depreciation is calculated on straight line method.

3 0
3 years ago
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