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yarga [219]
3 years ago
15

Why is the cyclically adjusted budget balance a better measure of the long-run sustainability of government policies than the ac

tual budget balance
Business
1 answer:
irina1246 [14]3 years ago
5 0

Answer:

because In the long run, real GDP tends to potential output.

Explanation:

Since actual GDP continues to increase economic output in the longer term, the seasonally adjusted annual budget balance is a better predictor of public policies ' long-term sustainability. ... Economic GDP dropped in recessions.

This means that incomes for consumers, business investment and profits for producers also fall.

The cyclically adjusted expenditure balance plays an important role in the EU budgetary framework, which still provides a better picture of fiscal policy focus.

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An employee who is responsible for planning, directing, and monitoring the work of other employees is a ________.
dem82 [27]

Answer:

Manager

Explanation:

an employee who is responsible for planning, directing, and monitoring the work of other employees is a manager

Hope this helped and have a good day

6 0
2 years ago
Shackleford corporation net income this year is $800,000. The company generally retains 35% of net income for reinvestment. the
ZanzabumX [31]

Answer:

A. $22.61

Explanation:

First,

find the growth rate(g);

g = ROE *retention  rate

retention  rate = 35%

ROE = Net income/value of equity

ROE = 800,000/5,000,000 = 0.16

Therefore, g = 0.16*0.35

g =0.056 or 5.6%

Price = \frac{D0(1+g)}{(r-g)}

D0 = Recently paid dividend

g = growth rate

r = required return

Price = \frac{1.37(1.056)}{0.12-0.056} \\ \\ =\frac{1.44672}{0.064} \\ \\ =22.605

Therefore, the value of this stock is $22.61

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3 years ago
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Natali5045456 [20]

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C- $3,400

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The Karla Salons has leased equipment from Smith Co. in a finance lease. The Smith Co will record the interest receivable from the Karla Salons in its income statement. The Karla Salons will record lease obligations in its balance sheet. Under the new ASU, the interest revenue which Smith Co. will record in its income statement is $3,400 for the year 2016.

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