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DochEvi [55]
3 years ago
11

Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon

etary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following statements about the debate over stabilization policy are correct? Check all that apply.
A. Advocates of active stabilization believe that implementation lags for fiscal and monetary policy do not exist.
B. Opponents of active stabilization policy believe that significant time lags in both fiscal and monetary policy often exacerbate economic fluctuations.
C. Advocates of active stabilization believe that automatic stabilizers have no effect on aggregate demand.
C. Advocates of active stabilization policy believe that the government can adjust monetary and fiscal policy to counteract waves of excessive optimism and pessimism among consumers and businesses.
Which of the following are examples of automatic stabilizers? Check all that apply.
A. Corporate income taxes
B. Personal income taxes
C. The federal funds rate.
Business
1 answer:
amm18123 years ago
5 0

Answer:B. Opponents of active stabilization policy believe that significant time lag in both fiscal and monetary policy often excercebate economic fluctuations.

C. Advocate of active stabilization policy believe that the government can adjust monetary and fiscal policy to counter waves of excessive optimism and pessimism among consumers and business.

Examples of automatic stabilizer

A. Corporate income taxes

B. Personal income taxes

Explanation:

Stabilization policy helps to stabilize the economy during expansionary or deficit period however a lag in the implementation will surely affect getting the right outputs from the implementation.

The economy has inbuilt stabilizer s that tend to correct excessiveness in economy such as the personal and corporate tax . The federal fund rate will be adjusted as the need be to stabilizer the economy even though it can be used as a stabilizer but it's not an automatic stabilizer.

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3 years ago
What are some arguments in favor of raising the minimum wage? On the other hand, what are some arguments against raising the min
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Answer:

Explanation:

The main argument in favor regarding increasing minimum wage is that a higher wage will result into an increase in the standard of living of the people. Furthermore, a rise in the minimum wage can help in lifting people out I poverty. Due to higher wages and salaries, workers will have more money to cater for their families and meet their needs. Lastly, an increase in the minimum wage means that the government can reduce its expenditures on helping the low income earners and can therefore invest the money in other critical sectors of the economy.

The arguments against raising the minimum wage is that it can lead to inflation. Inflation in the rise in the price for goods and services. When there's an increase in minimum wage, sellers may increase the price of goods as there'll be more money to spend by households. Also, it can lead to losses of jobs as employersay have to cut down cost on order to be able to increase the wages of some workers and thereby may result in some workers being laid off.

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3 0
3 years ago
A company started the year with "$185,000 of goods finished" and ready for sale. During the year, a total of $700,000 of goods w
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$110,000

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The closing balance in the finished goods inventory account is a function of the opening balance and the net movement that occurred during the year.

As such, the closing balance

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3 years ago
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The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.

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