Answer:
The correct answer is option A.
Explanation:
In the time of recession expansionary policy is required to boost the economy. An expansionary fiscal policy such as a reduction in tax will be helpful. A tax cut will cause an increase in disposable income. This will cause aggregate demand to rise. Consequently, output and employment will increase.
Similarly, in times of inflation, a contractionary policy will be required to eliminate inflationary pressures. A decrease in government spending would lead to a decrease in aggregate demand. This will cause the price level to get reduced.
Thus an economist would recommend tax cuts in case of recession and reduction in government spending in case of inflation.
Answer:
B. $450
Explanation:
Interest rate = 9% = 0.09
Account receivable = $20,000
Interest = 0.09 x 20,000
= $1,800
At December 31, Black should record interest revenue of
1,800 x (90/360)
= 1,800 x 0.25
= $450
The answer is $450
Answer:
B. adult; elastic.
Explanation: As wage increases, the adult worker will want to give more labor, which means the supply of labor will be increased and the demand will reduce.Wage increase is proportional to the increase in the supply of labor, most workers or laborers will want to give more or supply more labor and the employers will try to reduce their demand for labor. Elasticity of Labor supply is assumed to be greater than 1 as wage increases.
Answer:
Date Account Titles and Explanation Debit Credit
Salaries Wages expense $22,000
Cash $16,307
Withholding taxes payable (2940+840) $3,780
FICA taxes payable $1,683
Insurance premiums payable $230
(To record Swifty’s payroll)
Answer and Explanation:
As per the data given in the question,
Journal entries on July 1 and Dec. 31,2021
July-01 Investment in bonds A/C Dr. $300 million
Premium on bonds A/c Dr. $40 million
To Cash A/c $340 million
Dec-31 Cash A/c Dr. $10.5 million
($300 × 3.5%)
To Premium on bonds A/c $2.00 million
To Interest Revenue A/c $8.5 million
($340 × 2.5%)
