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Iteru [2.4K]
3 years ago
10

"The US government decides to lower military expenditures to reduce the budget deficit.What effect would you expect this shock t

o have on output and inflation in the short-run"?
Business
1 answer:
algol133 years ago
8 0

Answer:

A decrease in military investment by the government, with the aim of lowering public spending, would in turn mean a decrease in aggregate demand, as less money would be inserted into society, which would reduce outputs and, due to the reduction in demand, it would also reduce inflation.

Public expenditure, in economy, indicates the complex of money of public origin that is used by the government in public goods and/or public services aimed at pursuing public purposes, such as military expenditures for national defense. These are therefore the outputs by the government and therefore an item of liabilities within the national budget, the coverage of which is necessarily entrusted to taxation on taxpaying citizens or public debt.  If public expenditure is not adequately covered by the revenue of a non-sovereign state (e.g. taxation), it enters a typical financial situation of public deficit.

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Answer: If you tax something, you will get less of it; if you subsidize an activity, you will get more of it

Explanation:

Taxes are the levy that governments impose on people or firms. Subsidies are financial aid to companies in order to boost production and reduce price.

It should be noted that if you tax something, you will get less of it; if you subsidize an activity, you will get more of it. For example of an income is taxed, the owner of the income will geta lesser amount as tax will be removed.

6 0
3 years ago
What is the difference between excluded services and services that are not reasonable and necessary?
Kitty [74]
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3 years ago
Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes ar
choli [55]

Answer:

1. $4,100

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Cr Income tax payable $4,100

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Cr Cash $33,926

Explanation:

1. Calculation to Determine the amount of the accounting adjustment

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Cr Income tax payable $4,100

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January 20 payment of the fourth-quarter taxes.

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3 0
3 years ago
North america is about 80% urbanized. this mean that about 75% of north american
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The Nordstrom department store chain emphasizes the great lengths to which it goes in customer service. In fact, when it moves i
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Answer:

21

Explanation:

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3 years ago
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