This phenomenon best illustrates how a progressive income-tax system serves as an automatic stabilizer for the economy.
<h3>What is an automatic stabilizer?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of external agents . Examples include progressive tax and transfer payments. A progressive tax is a tax structure where those who earn higher income are taxed more and those that earn less pay less amount of tax.
In an expansion, progressive tax increases the tax paid and this reduces disposable income. In a recession, tax paid is reduced and this increases disposable income
Here are the options:
increases crowding out in the economy
decreases real interest rates in the economy
offsets the timing problem for fiscal policy
Serves as an automatic stabiler for the economy
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Patronage principle based its hiring and promotion system on political reasons while the merit principle employed the idea that hiring should be based on entrance examination and promotion. One of the major disadvantage of the patronage principle is that, it may end up employing people who are not qualify for the job. Merit principle choose based on qualifications.
Answer:
B. $497,000
Explanation:
Consolidated Balance of Equipment
Excess value at the acquisition $110,000
($350,000-$240000)
Book value as on Dec 31 2018 of Ford $170,000
Book value as on Dec 31 2018 of Regent $250,000
Less: excess depreciation <u>-$33,000 </u> ($110,000/10*3)
Consolidated balance of equipment <u>$497,000</u>
