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il63 [147K]
3 years ago
7

How can expansionary and contractionary tax policies be used to manage the economy? Be sure to give your answer in two to three

sentences.
Answer: Expansionary and contractionary policies can be used to encourage or discourage economic growth. Expansionary policies generally lower taxes and give consumers and producers additional money, which encourages spending and growth. On the other hand, contractionary policies generally raise taxes, which can give consumers and producers less to spend. This can cause less economic growth.
Business
2 answers:
Naddika [18.5K]3 years ago
7 0

Expansionary fiscal policy refer to lowering taxes or increasing government spending. When the government lowers taxes, it increases the disposable income of the consumers, thereby increasing the aggregate demand for goods in the economy. Similarly, when the government increases government spending it directly increases the aggregate demand in the economy. Both resulting in economic growth.

On the other hand, Contractionary fiscal policy is related to increasing taxes or lowering government spending. increase in Taxes will lower disposable income and thereby decrease the aggregate demand in the economy. Similarly, less government spending will directly lower aggregate demand and cause a reduction in economic growth.

Citrus2011 [14]3 years ago
7 0

Answer: Sample Response

Expansionary and contractionary policies can be used to encourage or discourage economic growth. Expansionary policies generally lower taxes and give consumers and producers additional money, which encourages spending and growth. This is done when unemployment is high. On the other hand, contractionary policies generally raise taxes, which can give consumers and producers less to spend. This can cause less economic growth, but is necessary when the economy is growing too quickly and inflation is rising.

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Answer:

The price of goods needs to be increased.

Explanation:

Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.

The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.

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3 years ago
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On January 2, 2018, Ava Co. issued at face value $53,300 of 9% bonds convertible in total into 9,649 shares of Ava's common stoc
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Answer: $123,583.90

Explanation:

Given the following Parameters,

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The following formula then applies,

Diluted EPS = (Net income + Interest after tax)/Total outstanding shares outstanding

Now, Interest(Before tax) = $53,300 * 0.09 = $4797

Now we have to calculate it After Tax

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The numerator is,

= (Net income + Interest after tax)

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The numerator in the diluted earnings per share calculation for 2018 would be $123,583.90

4 0
3 years ago
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Answer:

a file a claim

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Six-packs of soda, cartons of eggs, and three-packs of paper towels are all examples of products sold using a block pricing strategy.

A product is an object, system, or service provided to consumers on demand. That's all we can offer to the market to meet your wants and needs.

Item is for sale. Products are services or items. It can be in physical or virtual or cyber form. All products are made at one price and sold at one price. Calculated prices vary by market, quality, marketing, and target segment.

Learn more about products here:brainly.com/question/25922327
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