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VLD [36.1K]
3 years ago
15

Suppose one economist believes the target rate of unemployment is 4.5 percent while another believes it is 5.5 percent. Using Ok

un’s rule of thumb, by how much would you expect their estimates of potential GDP to differ in a $10 trillion economy?
Business
1 answer:
Arlecino [84]3 years ago
6 0

Answer:

$200 billion

Explanation:

Okun's law (or rule of thumb) states that for every 1% point drop in unemployment, the total output of the economy will increase by two percent.

In this case, since unemployment varies by 1% (= 5.5% - 4.5%), that would mean that the potential GDP differs in $200 billion (= $10 trillion x 2%) depending on which economist's unemployment estimation we use.

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Shelly has $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly's proprietorship paid $30,000 in W–2 wag
natka813 [3]

Answer:

Qualified Business Income (QBI) Deduction:

With respect to the applicable provisions, the following are the provisions relating to QBI deduction:

(a) For Joint filers, if the taxable income is less than $315,000, the QBI deduction is limited to 20% of the qualified business income.

(b) The qualified business income includes the interest income not allocable to the business.

In the present case, the interest amount of $20,000 will not be considered for the calculation of QBI deduction (refer point (b) above).

Therefore, the total taxable income of S and her spouse will be $274,400 ($200,000 + $74,400) which was below the threshold limit of $315,000. Hence, they can claim the QBI deduction of 20% on the qualified business income of $200,000. The QBI deduction for 2018 is calculated as under:

QBI Deduction for 2018 = QBI x 20%

= $200,000 x 20%

= $40,000

Therefore, the QBI deduction for 2018 is $40,000.

Note: If the total taxable income exceeds the threshold limit of $315,000 for QBI deduction, the value of W-2 wages and qualified property would have been considered.

5 0
3 years ago
If disposable personal income​ (dpi) =​ $800 and personal income taxes​ = $100, then what is personal income​ (pi)?
Ymorist [56]
The personal income is $700. 
GIven: 
Disposal personal income (dpi) = $800
Personal income taxes = $100

Solution:
Disposal personal income minus personal income taxes.
$800 - $100 = $700

So, the personal income or pi is equal to $700.
4 0
2 years ago
Gibson Electronics identifies licensees in various countries who produce and sell the company's products in their countries in r
sladkih [1.3K]

Answer:

E) sharing valuable technological know-how with a potential competitor.

Explanation:

From the question we are informed about Gibson Electronics who identifies licensees in various countries who produce and sell the company's products in their countries in return for a royalty fee on every unit sold. Gibson Electronics’ approach is risky because of the problems associated with sharing valuable technological know-how with a potential competitor. Technological know-how in organization can be regarded as sets of knowledge as well as skills which is developed by that participants and is used to guide the acquisition as well as creation, and operation of computer-based systems which gives enablements or brings about facilitation of the performance of business processes, sharing this with competitors in business could be dangerous potential competitors can embrace it to move their business forward which will affect the owner of the Technological know how Businesses in the market.

7 0
3 years ago
Fried donuts has sales of $764,900, total assets of $687,300, total equity of $401,300, net income of $68,200, and dividends pai
Tomtit [17]
Internal growth rate = Net income / Total Assets
Net income = $68,200 
Total assets = $687,300
Internal growth rate 
= $68,200 / $687,300
= 0.099228 x 100%
= 9.92 %
Fried Donuts has an internal growth rate of 9.92%.
5 0
3 years ago
If economists calculate the gdp for 2009, using current prices of year 2009, what are they estimating?
Vlad [161]
They are estimating the Nominal GDP. The Nominal GDP measures the quarterly economic output that occurred in the year. This would analyze production, employment, all the elements in the financial circulation. This is different from the real GDP because here it would include the inflation of prices that occurred. Nominal GDP only reflects on the economical changed within the current year regardless of inflation. 
6 0
3 years ago
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