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Alenkasestr [34]
3 years ago
10

The federal government tends to increase their spending to get the economy out of recessions. Explain the expected impact on eac

h of the components of aggregate demand due to this and the mechanism through which this operates.
Business
1 answer:
RoseWind [281]3 years ago
4 0

Answer:

Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.

Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).

During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.

Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment

Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.

Explanation:

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Presented below are incomplete manufacturing cost data.
rjkz [21]

Answer and Explanation:

The computation of the missing amount is as follows:

As we know that

The total manufacturing cost = Direct Materials Used  + Direct Labor Used + Factory Overhead

So,

(1)

= $42,700 + $64,200 + $52500

= $159,400

(2)

= $298,000 - $78,100 - $144,000

= $75,900

(3)

= $314,000 - $57,400 - $113,000

= $143,600

8 0
2 years ago
Maple Products is a manufacturer of electronic goods that markets its products in several countries across the world. The compan
Anton [14]

Answer:

C. serviceability

Explanation:

7 0
3 years ago
The benefit of the beautification initiative, as suggested by the survey, is. Because the estimated benefit isless than the cost
OverLord2011 [107]

Answer:

A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. Thus, the visual appearance would For the students of the college, the visual appearance of the campus is (non-rival/rival) and (non-excludable/excludable). Thus, the visual appearance would be classified as a public good.

Suppose the college administrators estimate that the beautification initiative will cost $4,400. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 300 students, asking each of them their willingness-to-pay for the beautification project. The average willingness-to-pay, as revealed by the survey, is $11.

The benefit of the beatification initiative, as suggested by the survey, is $3,300. Because the estimated benefit is (<u>less</u>/greater) than the cost, the college administrators (should/<u>should not</u>) undertake the beautification initiative.

Explanation:

A non-rival good or service is one whose benefit is not reduced by a person's consumption and does not prevent another user from enjoying its benefit.

When a good/service is non-excludable, it is impossible to prevent non paying users from enjoying its benefit. The beautification initiative being non rival and non-excludable can therefore be seen as a public good.

The benefit of the initiative = 300 students X $11

The college has a total of 300 students with an average willingness to pay $11. Because the $3,300 the students are willing to pay is less than the cost of the initiative, the college administrators should not carry out the beautification initiative.  

5 0
3 years ago
For interim financial reporting, a company's income tax provision for the second quarter of 20X4 should be determined using the:
Setler [38]

Answer:

The corporation tax of company for interim financial reporting must be determined using previous quarter corporation tax amount minus previous quarter tax surplus or plus previous quarter tax deficit.

Explanation:

This is one of the way we estimate the corporation tax which helps in the better estimation. This way of estimating the corporation tax is recommended methods by the International Accounting Standard IAS 12 Taxes, for estimating taxes for interim and yearly financial reporting.

4 0
2 years ago
On September 1, 2021, Southwest Airlines borrows $39.3 million, of which $6.6 million is due next year. Show how Southwest Airli
Pavlova-9 [17]

Answer:

Balance sheet

Current liability:

Current portion of long term debt = $6,600,000

Long term liability:

Notes payable = ($39,300,000 - $6,600,000)

                        = $32,700,000

Therefore,

Total liabilities = Current liabilities + Long term liabilities

                        = $6,600,000 + $32,700,000

                        = $39,300,000

4 0
3 years ago
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