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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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When the price is $12 the quantity demanded is 50. When the price increases to $24 the quantity demanded decreases to 30. Calcul
Allushta [10]

Answer:

PED = -0.4 or |0.4| in absolute terms

Explanation:

price elasticity of demand (PED) = % change in quantity demanded / % change in price

  • % change in quantity demanded = [(30 - 50) / 50] x 100 = -40%
  • % change in price = [($24 - $12) / $12] x 100 = 100%

PED = -40% / 100% = -0.4 or |0.4| in absolute terms

the demand is price inelastic since |0.4| < 1

this means that the change in quantity demanded is proportionally less than the change in price.

6 0
2 years ago
On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning Mar
Levart [38]

Answer:

Answer for the question:

On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $350,000 annually for 15 years beginning March 31, 2022. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $3,187,770 lease liability. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

Determine the interest rate implicit in the lease agreement. (Do not round intermediate calculations.)

Is given in the attachment.

Explanation:

3 0
3 years ago
Fine Lines Inc. is a notebook manufacturing company based in Ohio. Fine Lines' main market is Ohio. It aims at providing its pro
likoan [24]

Answer:

a.mechanistic

Explanation:

Based on the scenario being described within the question it can be said that it seems that Fine Lines Inc. is using a mechanistic structure. This type of structure, also known as a bureaucratic structure, is a structure based on a single formal and centralized network where authority comes from the top-level managers who make most of the decisions.

8 0
3 years ago
Read 2 more answers
Pizza International, Inc., reported the following information (in thousands): Operating Activities Net Income $ 236 Depreciation
Aleks04 [339]

Answer:

$22,640

The explanation is shown below:-

Explanation:

The computation of cash flow from operating activities using the direct method is shown below:-

                               Direct method

                            Pizza International, Inc.

                          Statement of cash inflow

Cash flow from operating expenses

Cash received from customers       $143,777

($143,951 - $174)

Cash Paid

To suppliers                                      ($53,773)

($45,700 - $651 + $8,724)

To salaries and wages                     ($56,855)

For office expenses                         ($7,730)

($7,785 + $668 - $723)

For income tax expenses               ($2,779)

($50 + $2,729)

Net cash inflow from operating

activities                                            $22,640

It is mainly due to no depreciation expenses for cash products. Depreciation expenses do not contribute to cash outflows. Because of which company has reported large cash inflow from operations compared to near net loss.

3 0
3 years ago
The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is:__________. a. expens
seraphim [82]

Answer:

C. Productive

Explanation:

3 0
2 years ago
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