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blondinia [14]
3 years ago
9

Several economists have recognized the limits of fiscal policies when attempting to stabilize or aid economic recovery. During t

imes of economic contraction, fiscal policies are enacted to close the recessionary gap. Which three lags make fiscal policies less effective?
Business
1 answer:
Bond [772]3 years ago
3 0

Answer:

There are following lags:

1. Data Lags: Many macroeconomic information arrangement, for example, GDP are just accessible with a significant slack, and they are dependent upon huge modifications. Along these lines, data strategy creators utilize is review, not contemporaneous. Getting data about the present condition of the economy is troublesome, we don't have great data until months after the economy has just changed course.  

2. Recognition Lags: Once the information are at last accessible it requires some investment to make sense of what they are stating. Is the downturn in work right now transitory, or the start of a more extended term pattern? In the event that it's brief, no compelling reason to act, however on the off chance that it's lasting, at that point activity might be required.  

3. Legislative Lag: Once we've gotten the essential information and closed something must be done, there can be impressive slacks in the authoritative procedure as administrators banter the specific type of the bundle, or contradict it out and out.  

4. Implementation Lag: Once a strategy is spent, it sets aside some effort to establish it, for example to set up the organization of the cash, to convey it to the correct offices, to make the arrangements expected to spend it, and so forth.  

5. Impact Lag: After the entirety of that, and the strategy is at last instituted, it sets aside effort for arrangement to hit the economy and produce results. For money related approach if can be a year to eighteen months before the pinnacle impact of the arrangement is felt (however the administrative lags are a lot shorter since the FOMC can act quicker than congress). The viability slack for financial strategy is somewhat shorter, yet at the same time impressive, a half year at any rate.

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What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally
Tanya [424]

If three more restaurants opened in a small town where only four restaurants were open for business originally then The Restaurants  would form a cartel in the town.

<u>Explanation:</u>

In such a situation the restaurant would preferably form a cartel. A Cartel is an association of various firms. This association is formed to keep the prices at a higher level. When a cartel is formed it restricts competition.

Cartel is formed with the mutual understanding of all the firms. The existence of cartels negatively affects the consumers, as they have to pay higher prices and cannot afford to bargain as the price will be determined by all the concerns collectively. It might result in limited supply and more demand which will result in price to increase.

3 0
3 years ago
If bonds are issued at 101.25, this means that ____________________
Whitepunk [10]

Answer:

c.a $1,000 bond sold for $1,012.50.

Explanation:

We assume the par value is $1,000 and since the bond is issued at 101.25 that means its selling price is

= $1,000 × 101.25%

= $1,012.50

Since the bond is issued more than the face value that reflects the premium and if the bond is issued less than the face value so it is issued at a discount

So the right option is c.

4 0
2 years ago
Medoc Company provides the following information about its single product Targeted operating income 54 comma 790 Selling price p
insens350 [35]

Answer:

Option C) Medoc Company's Break Even Point is 34,100 Units

Explanation:

Break Even point is defined as the level of activity or production at which the company's Total Sales Revenue is equal to its total expenses. In other words, Break Even Point is No Profit, No Loss Point.

Break Even Point in Units = Total Fixed Costs ÷ Contribution Per Unit

where:

Contribution per unit = Selling Price per unit - Variable Costs per Unit

<u></u>

<u>Calculations:</u>

Contribution per Unit = $6.30 - $4.55 = $1.75

Break Even Point in Units =  $59,675  ÷ $1.75

Break Even Point in Units =  34,100 Units

8 0
3 years ago
A producer's market means higher prices.<br><br><br> True False
ahrayia [7]
The answer is True .
6 0
2 years ago
g Crowding out may occur when fiscal policy involves Question 28 options: A) either increases in government purchases or tax cut
aniked [119]

Answer: D. increases in government purchases.

Explanation:

Crowding out may occur simply due to expansionary fiscal policy that is, a situation wherby the government wants to increase the money in circulation and also increase its expenditure. This can lead to the government borrowing funds.

Crowding out may occur when fiscal policy involves increases in government purchases. This borrowing in turn, affects the money that will be available to the private investors as there'll be lesser funds for them.

4 0
2 years ago
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