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Masteriza [31]
3 years ago
6

If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum require

d change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?
Business
1 answer:
Shalnov [3]3 years ago
3 0

Answer:

Explanation:

If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?

The minimum required change in taxes will be greater than that of the minimum required change in government spending

tax multiplier (mpc/mps = 0/8/0.2=0.4) is smaller than the government spending multiplier (1/mps= 1/.2=5) because of the initial increase in disposable income caused by the decrease in income tax will be saved rather than spent

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Answer the following statement true (T) or false (F):
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Answer:

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Answer:

S/N   Account Titles and Explanation      Debit     Credit

A       Supplies                                             $5,300

              Cash                                                             $5,300

          (To record the purchase of supplies for cash)

B       Salaries and wages expense            $ 4,480

              Cash                                                             $4,480

         (To record the payment of wages and salaries)

C        Prepaid rent                                       $ 560

               Cash                                                             $560

          (To record the payment of prepaid rent for July)

D        Accounts receivable                           $13,400

                Service revenue                                         $13,400

         (To record the services provided on account)

E         Accounts payable                               $800

                   Cash                                                          $800

           (To record the payment made on Accounts payable)

F          Cash                                                     $310

                    Unearned revenue/Deferred revenue    $310

           (To record the unearned services revenue)

G          Repairs and maintenance expense  $410

                     Accounts payable                                     $410

             (To record the accounts payable for repairs expenses incurred)

H           Equipment                                          $740

                      Cash                                                           $740

             (To record the purchase of equipment for cash)

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