Answer:
B) the government could change taxes and expenditures rapidly.
Explanation:
Fiscal policy is the government's spending and taxation policies carried out to influence the country's economy. The government can carry out an expansionary fiscal policy by reducing taxes or increasing spending to try to boost the economy, or it can carry out a contractionary fiscal policy that increases taxes and reduces spending to try to cool down the economy.
Expansionary fiscal policies are carried out to try to increase total aggregate demand, but it also increases the government's deficit and national debt. The main gals of fiscal policy should be to lower unemployment rate and achieve a sustainable economic growth.
Answer:
Results are below.
Explanation:
Giving the following information:
Production= 800 boxes
Each box of tile requires 0.50 hours of direct labor.
Employees of the company are paid $17 per hour.
<u>First, we need to determine the number of hours required:</u>
Number of hours= 800*0.5= 400 hours
<u>Now, the total direct labor cost:</u>
Direct labor cost= 400*17= $6,800
Answer:
Explanation:
The lunch plate industry in Oahu is a perfectly competitive industry.
This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.
The industry is currently in long-run equilibrium and has the price level at $5.
As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.
As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.
So the long-run equilibrium will be reestablished at a lower price than earlier.
This is a true fact, what is the question though?
Answer:
1. Debit Interest Expense $7,000; debit Notes Payable $7,238; credit Cash $14,238.
Explanation:
The journal entry is shown below:
Note payable A/c Dr $7,238
Interest expense A/c Dr $7,000
To Cash A/c $14,238
(Being the first payment on the note is recorded)
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest
= $100,000 × 7%
= $7,000
And, the remaining balance left is reported in the note payable account
