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3 years ago

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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Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial

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Answer:

$22,577.1

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SANTANA INC.Balance Sheet (Partial)January 31, 2014

Current liabilitiesNotes payable $2,563.6

Accounts payable $4,263.9

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Warranty liability $1,417.3

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Bonds payable $1,961.2

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2 years ago

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale

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Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $400,000

To Common Stock capital $400,000

(Being cash is recorded)

2. Equipment Dr, $60,000

To Cash $15,000

To Note payable $45,000

(Being equipment is recorded)

3. Inventory Dr, $122,000

To Accounts payable $122,000

(Being purchase of inventory is recorded)

4. Accounts receivable $170,000

To Sales revenue $170,000

(Being sales revenue is recorded)

Cost of goods sold Dr, $102,000

To Inventory $102,000

(Being cost of goods sold is recorded)

5. Rent expenses Dr, $5,500

To Cash $5,500

(Being rent expenses is recorded)

6. Prepaid Insurance Dr, $6,550

To Cash $6,550

(Being insurance is recorded)

7. Accounts Payable Dr, $102,000

To Cash $102,000

(Being accounts payable is recorded)

8. Cash Dr, $76,500

To Accounts receivable $76,500

(Being cash is recorded)

9. Depreciation expenses Dr, $1,500

To Accumulated depreciation $1,500

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