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madam [21]
3 years ago
9

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 3 percent of real GDP to a s

urplus of 1 percent of real GDP. The government is engaging in a(n) ____
Business
1 answer:
natulia [17]3 years ago
6 0

Answer:

Contractionary Fiscal Policy is the correct answer.

Explanation:

It is a fiscal policy that includes increasing taxes and decreasing the expenditure to curb inflationary pressures. As the taxes are increased, households have less income to spend and the lower disposable income affects consumption. Tax increments also lead to less profit for businesses. GDP includes the consumption and private investment hence both of them fall as a result. The government tries to magnify the fall in GDP with the multiplier effect.

If the government decreases the expenditures then it would lead to a decrease in GDP, as the government expenditures are a part of GDP.

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There are three reasons for the downward slope of the demand curve:
Virty [35]

Answer:

Explanation:

From the above question, three reasons for the downward slope of the demand curve and the effect with the component of aggregate demand are:

1. Net Exports : the international trade effect

2. consumption : the wealth effect

3. investment : the interest rate effect

4 0
3 years ago
explain how the looting of shops and malls will affect businesses in terms of the relationship between social responsibility and
ololo11 [35]

The main purpose of  a business is to make profit. A businessmen will feel secure to operate his business activities in a country where he feels himself and his business activities secure.

When the shops and malls are looted in a country, the businessmen will have feeling of insecurity and so they will shut down their business activities because whatever profits they make from running business, it is looted by robbers.

There is always some social responsibility of the citizens that even in case of emergency situations they should not be unethical activities and indulge in criminal activities.

Learn more at brainly.com/question/24383317

8 0
3 years ago
What is the purpose of capital controls?
Usimov [2.4K]

Answer:

2. To support fixed exchange rates and prevent speculative attacks on currencies 

Explanation:

Capital control is any restriction placed on the exchange of currencies across a countries borders. It is done to prevent volatility of exchange rate. it reduces speculative attacks on currency. It also controls the flow of currency in an economy.

Capital control can be in the form of a fixed exchange rate or placing an upper limit on the amount of currency that can be imported or exported.

5 0
4 years ago
Williams Company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for con
Oksi-84 [34.3K]

Answer:

Explanation:

Ending wotk in process inventory = Direct materials + Conversation cost = 93,600 + 135,000 = 228,600

[Direct materials = 2.60*36,000; Conversation cost = 3.75*36,000]

Finished goods inventory = Units transferred to finished goods*Total equivalent cost per unit = 250,000*3.75 = 1,587,500

3 0
3 years ago
Karin does not want her supervisor to know that the employees she is in charge of are not fulfilling their obligations, fearing
grin007 [14]

Answer:

general distortion.

Explanation:

According to the above scenario, it is correct to state that the type of message distortion is a general distortion, which occurs when a message is transmitted differently to a given receiver, in order to minimize negative situations, such as in a relationship of hierarchical work.

In the question we see that Karin distorted the facts so as not to displease her supervisor, so the general distortion is very recurrent in these situations. In order to reduce distortion, it is ideal that in power relations there is an opening for assertive and non-punitive communication, where trust and professional ethics prevail.

7 0
3 years ago
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