This phenomenon best illustrates how a progressive income-tax system serves as an automatic stabilizer for the economy.
<h3>What is an automatic stabilizer?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . Examples include progressive tax and transfer payments. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
In an expansion, progressive tax increases the tax paid and this reduces disposable income. In a recession, tax paid is reduced and this increases disposable income
Here are the options:
increases crowding out in the economy
decreases real interest rates in the economy
offsets the timing problem for fiscal policy
Serves as an automatic stabiler for the economy
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Answer: See explanation
Explanation:
a. Debit: Raw material $12000
Credit: Account payable $11500
Credit: Material price variance $500
(To record material purchase)
b. Debit: Work in process 11600
Credit: Raw material 11200
Credit: Material price variance 400
(To record material issued)
Note:
Material price variance for (a)= 12000 - 11500 = 500
Work in progress = 5800 × 2 = 11600
Material price variance for (b) = 11600 - 11200 = 400
Answer:
total expected bonus = $1262800
Explanation:
given data
bonus = $23,000
Probability = 12 percent
bonus = $10,000
Probability = 25 percent
bonus = $6,000
Probability = 8 percent
total sales = 220
solution
first we get probability for bonus amount = $0
probability = 1 - ( 12% + 25% + 8 % )
probability = 0.55
so here Expected bonus per employee company will pay is
Expected bonus = $23000 × (0.12) + $10000 × (0.25) + $6000 × (0.08) + $0 (0.55)
Expected bonus = $5740
so total expected bonus is
total expected bonus = $5740 × 220
total expected bonus = $1262800
Answer:
Steak is a normal good, and hamburger is an inferior good for Jennie
Explanation:
Based on this behavior, we can assume steak is a normal good, and hamburger is an inferior good for Jennie. That is because a normal good is any good who's demand increases when there is a rise in the consumers' income, while an inferior good sees decreased demand due to a rise in income. Therefore, since Jenna buys more (increased demand) steak and less (decreased demand) hamburger due to her increased income this means that steak is a normal good, and hamburger is an inferior good for Jennie
Answer:
Check the explanation
Explanation:
Particulars Amount in $
A. Gross Estate 8600000
Less: deductions (funeral & administrative tax) 70000
B. Taxable estate 8530000
c. Gift-Adjustable Taxable estate value:
Taxable estate 8530000
Charities will be deucted from tax calculation 1000000
gift-adjusted taxable estate value 7530000
D. estate would be subject to tax 7530000
E. estate tax liability Calculated below 876000
For estate more than 53400000 tax will be charged at 40%
So, same is 40% of excess on 53400000
Taxable estate before threshold after deducting 53400000 from estate that would be subject to Tax 2190000
Tax at 40% of excess value 876000
