Answer: The answer is as follows:
Explanation:
Potential GDP = consumption + investment + government purchases + net export
= 300 + 50 + 100 + 20
= $470
If the full-employment level of GDP for this economy is $620 billion.
In this situation, potential GDP is less than the real output or GDP at full employment level. From the above calculation, the potential GDP is $470 and GDP at full employment is $620. So, there is a gap of $150 between Potential GDP and real output.
Therefore, government should increase the spending and cut down taxes to reduce the GDP-gap.
That statement is false
If you're using a straight line method, the amount of depreciation throughout the year will be determined using a single percentage equation.
Therefore, the amount of depreciation by using method will be exactly the same throughout the year, not like it mentioned on the statement above
Answer:
$200,000
Explanation:
The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103
Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.
Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.
Answer:
Correcting Entry
March 8 Dr. Cr.
Supplies $664
Equipment $600
Account Payable $64
Explanation:
Entry Should be
March 8 Dr. Cr.
Supplies $664
Account Payable $664
Entry Recorded
March 8 Dr. Cr.
Equipment $600
Account Payable $600
Firs error is amount recorded as $600 rather $664 and the second is account of equipment debited rather the account of Supplies Inventory.
