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Gennadij [26K]
3 years ago
8

Suppose we have the following information for 2008: Potential output: $17 trillion Actual output: $16 trillion Actual Deficit: $

500 billion Tax Rate: 15% What is the structural deficit in 2008
Business
1 answer:
Step2247 [10]3 years ago
4 0

Answer:

The structural budget in 2008 is $350 billion

Explanation:

Actual deficit = Government spending - Tax Revenue Collection

i.e Actual deficit = G-T

T = (Tax rate) (Actual output)

$500 billion = G - (0.15)($16 trillion)

$500 billion = G - 2400 billion

G =  $500 billion + 2400 billion

G =  $2900 billion

Thus, Government spending is $2900 billion

Structural deficit = G - T'

T' = (Tax rate)(Potential output)

T' = (0.15)(17000 billion)

T' = $2550 billion

Structural deficit = G - T'

Structural deficit = $2900 billion - $2550 billion

Structural deficit = $350 billion

Thus, the structural budget in 2008 is $350 billion

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I think the correct answer would be primary source. It is an account of an event created by someone who took part in or witnessed the event. It is also known as original source.  It is any document, manuscript, diary, autobiography, artifact, recording or any source that was made at the time being studied. Examples are interviews, archives, photographs, letters, films and scrapbooks. When the data from these primary sources are obtained from other source wherein they are being analyzed and interpreted then these sources will be called as a secondary source. Examples are articles, books, magazines, surveys, internet resources.
8 0
3 years ago
Brief Exercise 12-06Flint Corporation owns a patent that has a carrying amount of $290,000. Flint expects future net cash flows
Morgarella [4.7K]

Answer:

Debit Impairment loss account   $50,000

Credit Intangible asset account   $50,000

Being entries to recognize impairment loss on patent.

Explanation:

According to IAS 36, an asset is impaired when the carrying amount of the asset is more than the recoverable amount. The recoverable amount is the higher of the fair value and the future net cash flow from the assets.

Given;

Carrying amount = $290,000

Expected future net cash flows from this patent = $240,000

Fair value of the patent = $133,000

The recoverable amount = $240,000 (as this is higher than the fair value)

Impairment is the difference between the carrying amount and the recoverable amount.

Impairment = $290,000 - $240,000

= $50,000

Entries required

Debit Impairment loss account   $50,000

Credit Intangible asset account   $50,000

Being entries to recognize impairment loss on patent.

7 0
3 years ago
Wendy goes shopping and finds two outfits that she really likes, but she can only afford to purchase one. what type of conflict
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<span>Indecision is the type of conflict Wendy is suffering.  </span><span>Consumer chooses a competing choice, rather than the previously purchased choice, on the next purchase occasion. Categories of switching costs include procedural, financial, and relational.  based on the affect, or feeling, attached to the products or behavior under consideration and trying to make  perspective- assumes consumers often make purchases and reach decisions is  </span>Experiential decisions.

 

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3 years ago
Question 3<br>When a court hears a breach of contract dispute, its job is to:​
Gemiola [76]
Their job is to find a verdict
3 0
3 years ago
The government challenged the acquisition by Procter &amp; Gamble (P&amp;G) of Clorox. Clorox was the leading manufacturer of li
Phoenix [80]

Answer:

Answer: The basis for the government's challenge to P&G's acquisition of Clorox

Explanation:

The horizontal merger is the basis for the government's challenge to P&G's acquisition of Clorox because the result would have lessened competition substantially in that line of commerce nationwide. P&G being the leading and mainly national advertiser and also mainly national seller of soaps, detergents and cleaners with sales that accounted for 54 % of the market and a  leading brand with 48% of national sales.

With this type of advertising and power control which P&G possess, this would put P&G in a position to control the market and potentially detrimentally affect the consumers. These advantages they posses would reduce the number of competitors and lead to greater concentration in the industry they are.

3 0
3 years ago
Read 2 more answers
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