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sdas [7]
3 years ago
10

The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas

es spending by 250, how much will output increase by
Business
1 answer:
sashaice [31]3 years ago
3 0

Answer:

The answer is 750

Explanation:

When government increases its spending, this increase in spending leads to increases in income for households which cumulatively increase the national income, this effect is known as multiplier effect.

Government has increased its spending by 250 while multiplier effect is 3.

Therefore, output will increase by 750(250 x 3)

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What is supply-side fiscal polioy? Identify each policy action as being focused on the demand side, the supply side, or both. Dr
Advocard [28]

Answer: Please refer to Explanation

Explanation:

Supply Side Fiscal Policy focuses on how to improve the ability of companies to supply more goods to the economy. The aim being that as companies supply more, they grow more and employ more people.

Demand Side Fiscal Policy on the other hand focuses on how to give more power to the Demand side of the Economy. It holds that increasing demand leads to increased supply which is good for the economy.

Classifying the above,

1. research grants for a corporation developing new technologies. SUPPLY SIDE.

This is aimed at increasing supply by improving the ways a company is able to produce it's goods and services.

2. government-funded scholarships for college students. SUPPLY SIDE.

This is supply side because it leads to more Colleges offering placement to students.

3. stimulus packages for firms that are "too big to fail". DEMAND SIDE.

Companies considered Too big to fail usually hire a lot of people. Keeping them running leads to them being able to pay off their employees which increases the demand in the economy.

4. increasing spending on "shovel-ready" projects. DEMAND SIDE.

Shovel Ready projects are those that are ready to be initiated. By increasing spending on them, they hire people immediately and begin work which increases the income flowing to people in the economy which increases demand.

5. lowering income tax rates at all income levels. BOTH.

By lowering income tax levels people are both able to spend more which increases demand as well as able to Invest more in companies which will increases supply.

8 0
3 years ago
Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the
arsen [322]

Answer:

2nd January

Dr Machinery              $178,000

  Cr Cash                    $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery              $4,000

  Cr Cash                    $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).  

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.  

6 0
4 years ago
You are working on the toll plaza construction phase of the Grand Harbor Tunnel project. You notice that the concrete being pour
Radda [10]

Answer:

Discuss the concerns you have with the supervisor in charge.

Explanation:

It is wrong under the ethics code to ignore a clear sign that an intervention is required be it in business decision making or in this case, construction. It is your obligation to report any abnormality noticed to the supervisor in charge.

4 0
4 years ago
g Marlboro Construction enters into a contract with a customer to build a warehouse for $725,000 on April 15, 2021 with a comple
Nookie1986 [14]

Answer:

B. $725,000

Explanation:

The expected value for the contract will be :

10% ($725,000 + 12,000 + 12,000 ) + 30% ($725,000 + 12,000 ) + 25% ($725,000 ) + 20% ($725,000 - 12,000 ) + 15% ($725,000 - 12,000 - 12,000 )

= $ 74,900 + $221,100 +$181,250 + $142,600 + $105,150 = $725,000

Marlboro constructions expected value of the contract is 725,000 based on the given probability estimates of contract completion.

8 0
3 years ago
Jacqueline is in the market for a new laptop. She has spent quite a bit of time gathering information and thinking about the pur
aalyn [17]

Based on the fact that Jacqueline had to spend time to research before she made her decision, she is most likely an<u> early majority.</u>

<h3>Who are the early majority?</h3>

These are people who buy a good around the same time as most people but not too log after a product has been released.

They tend to embark on a lot of research before they make a decision which is what Jacqueline is doing.

Find out more on the early majority at brainly.com/question/15858673.

#SPJ1

8 0
2 years ago
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