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arlik [135]
2 years ago
12

An economy is operating at an output level below potential real GDP. If the government wishes to use fiscal policy to bring the

economy back to its potential real GDP, it will: increase the money supply. increase its spending. increase taxation. decrease the money supply.
Business
1 answer:
Ganezh [65]2 years ago
7 0

Answer:

The answer is B. increase its spending.

Explanation:

Fiscal policy is a tool used by the government of every nation to control its economy. It uses its spending and revenue (tax) to control it.

When the economy is operating at an output level below potential real GDP, it means there are low activities in the economy i.e reduced households' consumption, reduced business investments and reduced government spending.

Government can stimulate the economy (which will increase real GDP) by increasing its spending in all areas.

Increasing taxes will reduce GDP because households' consumption will reduce due to lower disposable income and business investments too will reduce.

Option A and D are wrong because money supply is a monetary policy.

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A person has just been awarded an income increase to offset the effects of an increase in the overall cost of living in his coun
ArbitrLikvidat [17]

The person's new salary based on the new CPI of 112 should be $30,545.

<h3>What is the consumer price index (CPI)?</h3>

The Consumer Price Index (CPI) is an aggregate measure of the average price changes over time for a market basket of consumer goods and services. The index is used by businesses, governments, and individuals to gauge the inflation trend in the economy.

Data and Calculations:

Old CPI = 110

New CPI = 112

Old salary = $30,000

New salary = $30,545 ($30,000/110 x 112)

Thus, the person's new salary based on the new CPI of 112 should be $30,545.

Learn more about the consumer price index (CPI) at brainly.com/question/24888747

8 0
2 years ago
Financial statement auditors provide some degree of assurance that financial statements are free of material misstatement. Many
sineoko [7]

Answer:

First of all, an auditor must be skeptical about the information that he/she is gathering and analyzing. They should try to get as much audit evidence as they can in order to form an opinion. But an auditor can also reasonably assure that there are no material misstatements, either intentional or not intentional.

Most auditor procedures are intended to discover unintentional misstatements, but intentional misstatements are very hard to discover because more than one individual (or even a very large group) might have colluded in order to conceal them. The auditor gets his information from the controller, internal auditor, and other people within the organization, but what if they all colluded in order to conceal their bad actions.

E.g. an auditor should check for shipping receipts to be complete, accurate and in order, but he/she relies on information given by the same people that he/she is evaluating. The auditor can conclude that the shipping reports are complete, but he/she cannot state that they are true and valid because he/she wasn't there.

3 0
3 years ago
The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In a
astra-53 [7]

Answer:

Actual Price paid for materials = $4.2136 \times 2,200 = $9,270

Actual price per unit = $4.2136

Explanation:

Provided information,

Standard Material per unit = $4

Total cost = $8,400

Standard Quantity = $8,400/$4 = 2,100 units

Provided Material Price variance = $470 unfavorable = - $470

= (Standard Price - Actual Price) \times Actual Units

Material Quantity Variance = $400 Unfavorable = - $400

= (Standard Quantity - Actual Quantity) \times Standard Rate

Using Material Quantity Variance

- $400 = (2,100 - Actual Quantity) \times $4

-$400/$4 = 2,100 - Actual Quantity

Actual Quantity = 2,100 + 100 = 2,200 units

Now, putting this value in Material Price Variance we have,

- $470 = ($4 - Actual Price) \times 2,200

-$470/2,200 = $4 - Actual Price

- $0.214 = $4 - Actual Price

Actual Price = $4 + $0.2136 = $4.2136

Final Answer

Actual Price paid for materials = $4.2136 \times 2,200 = $9,270

Actual price per unit = $4.2136

8 0
3 years ago
You design HR management and payroll software. At a recent networking event, you met the HR manger at a small local accounting f
ratelena [41]
I believe it is formal
7 0
3 years ago
Describe free float and how you can use it to your advantage in scheduling and managing a project.
nika2105 [10]

Answer and explanation:

Free float refers to the time an activity can be delayed in a program without affecting the work to be delivered on the due date, either affecting the beginning of any subsequent activity. The free float allows extending activities until the following step starts which allows the organization to verify the current step they are in was properly completed.

Besides, in scheduling and managing a project, free-floating can be used as a tool to find out if the program has been completed fulfilling the expectations of the program and if the organization is ready and has all the elements necessary to move forward.

4 0
3 years ago
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