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pishuonlain [190]
3 years ago
7

During recessions, taxes tend to

Business
1 answer:
d1i1m1o1n [39]3 years ago
5 0

Answer:

b. rise and thereby decrease aggregate demand.

Explanation:

When the economic growth is negatively far away from the potential level, it means destruction and missing development and it starts recession period on the economy. This period will show falling GDP, falling incomes.

In Recession,

- Real GDP , aggregate demand and national output will fall dramatically

- Unemployment will soar to the top, there will be the problem how to find job

- Inflation rates besides the cases above will tend to decrease because there will be lower demand in the economy as well.

- The government will also increase its debts because of expansionary fiscal policy and automatic stabilizers (the government will tend spend more on unemployment benefits)

- Asset prices will decrease because of less demand

- Interest rates will be cut off by central banks due to the aims of stimulating the economy

- Investments will also drop by businesses

-Taxes will tend to increase and needs some expansionary fiscal policy to decrease it

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Equipment was purchased for $300,000. Freight charges amounted to $14,000 and there was a cost of $40,000 for building a foundat
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Answer:

b)

Annual Depreciation expense= $58,800

Explanation:

<em>According to International Accounting standards(IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.</em>

So we will add the purchase cost to installation  , freight charges.

Cost of assets = 300,000 + 14,000 + 40,000 =$354,000

Annual depreciation = (Cost - Scrap Value)/ Number of years

                                   = (354,000 - 60,000)/5

                                 =$58,800

Annual Depreciation expense= $58,800

8 0
3 years ago
Before moving out of their apartment, Brad and Kim Westgate decided to have their carpets cleaned by Service Master, a company s
arlik [135]

Answer:

2) intangibility

Explanation:

A service can be defined as a collection of intangible goods that are being offered by a service provider to the end user in order to meet their needs or requirements. Thus, it is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed by the service takers.

This scenario best illustrates the intangibility of services.

7 0
3 years ago
If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result
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d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.

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In the example, even though the news have reported that his favorite shoe brand uses child labor to manufacture the brand’s shoes, Mark chooses to believe that the media is lying instead of accepting the report as true.

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