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zimovet [89]
4 years ago
12

In the 1990s politicians in Washington D.C. were looking for ways to balance the budget. Former Federal Reserve Chairman Alan Gr

eenspan brought attention to the importance of the Consumer Price Index (CPI) and its link to cost-of-living adjustments (COLAs) in several areas of the federal budget--most notably Social Security. Alan Greenspan argued that the CPI overstated inflation and thus led to unjustified COLAs. According to Alan Greenspan, these unjustified COLAs therefore increased the deficit, and if the overstatements in the CPI were corrected this would contribute to balancing the budget. The Senate Finance Committee created the Boskin Commission in the 1990s to examine possible overstatements of the CPI. The commission came out with its estimate that the CPI overstated inflation by 1.1%. Answer the following questions: 1. If the Boskin Commission's estimate was right and the CPI overstates inflation by 1.1 % every year--what does that say about real GDP per capita and living standards in general in the United States, which are affected by the CPI
Business
1 answer:
Hitman42 [59]4 years ago
4 0

Answer:

Explanation:

If the Boskin Commission's estimate was right and consumer price index overstated inflation by 1.1% every year, this is what we can derive about REAL GDP PER CAPITA and GENERAL LIVING STANDARDS IN THE UNITED STATES:

(A) Real Gross Domestic Product per Capita is the total (gross) production per head or per person (per capita) within (domestic) an economy; after accounting or adjusting for inflation. Before adjusting for inflation, we have the Nominal GDP. So the term "real" shows that the value has accounted for inflation. If inflation is positive in the economy, then Real GDP figure will be less than Nominal GDP figure. I hope you understand this background information.

So if consumer price index is overstating inflation, real GDP per capita will be higher than it is perceived/calculated to be, in those years

(B) The general standard of living (which is affected by consumer price index) would also be higher than perceived or calculated.

Note here that the 'general' standard of living is a measure that sums up living standard 'per capita'.

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In its first year of operations, Grace Company reports the following:
ANEK [815]

Answer:

D) $25,000.

Explanation:

The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.

Net Income is derived by subtracting Expenses from Revenue.

N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.

So, The Net Income can be calculated as follows;

Revenue $60,000

Less: Expenses $35,000

Net Income $25,000

Hence Option D will be correct answer.

#NETINCOME

#PREPAIDEXPENSES

#ACCRUALBASISOFACCOUNTING

5 0
3 years ago
________ charts or network diagrams show precedence relationships among the project activities/tasks.
RUDIKE [14]

Answer:

The precedence diagramming method depicts relationships between activities.

Explanation:

Some of its popular applications include: - This approach is used to create network diagrams for project schedules such as critical path, critical chain, and so on. Relationships between activities are depicted using the precedence diagramming method.

3 0
3 years ago
Your team consists of 12 members, each in different locations, who are collaborating on a detailed committee report. Your team i
elena-14-01-66 [18.8K]

Answer: A. Google Docs

Explanation:

Google Docs will be the best solution in this case because it is a cloud computing tool that enables people to work on a document simultaneously across the world. As others are working on the documents, the saves that they make are instantly saved on the document and reflected across all users who have access to the document at the time.

7 0
4 years ago
At December 31, before adjusting and closing the accounts had occurred, the Allowance for Doubtful Accounts of Seaboard Corporat
anygoal [31]

Answer:

Debit to Uncollectible Accounts Expense of $5,300.

Explanation:

Based on the information given the year-end adjusting entry for Seaboard Corporation in Journal Entry format will be DEBIT TO UNCOLLECTIBLE ACCOUNTS EXPENSES OF $5,300.

Uncollectible Accounts Expense=Allowance for Doubtful Accounts +Accounts receivable Uncollectible

Uncollectible Accounts Expense=$3,200+$2,100

Uncollectible Accounts Expense=$5,300

4 0
3 years ago
If a company were to draw from the ideas proposed in the various theories of international trade, from a profit perspective, how
Degger [83]

The business locations regarding the International trade can be selected based on the productive activities to the countries where they can be performed efficiently.

<h3>What is international trade?</h3>

It should be noted that an international trade simply means the trade between two or more countries.

In this case, it can be deduced that the business locations regarding the international trade van be selected based on the productive activities to the countries where they can be performed efficiently.

Learn more about international trade on:

brainly.com/question/15115779

4 0
2 years ago
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