The combination of fiscal policy actions that would be most contractionary for an economy experiencing severe demand-pull inflation is an increase in taxes and decrease in government spending.
<h3>What is a
demand-pull inflation?</h3>
Basically, an inflation refers to a general rise in the price of goods in an economy. The demand-pull inflation causes am upward pressure on prices due to shortages in supply, a condition which the economists describe as "too many dollars chasing too few goods." As well, an increase in the aggregate demand can also lead to this type of inflation.
In Keynesian economics, the increase in an aggregate demand may be caused by a rise in employment, as companies need to hire more people to increase their output. A strict labor market means a higher wages, which translates into greater demand. The demand-pull inflation can be compared with cost-push inflation.
In conclusion, the appropriate fiscal policy for an economy experiencing severe demand-pull inflation are to reduce government expenditure, increase taxes, or implement both.
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Companies use the production function to determine the optimal combination of labor and capital to produce a certain amount of out put. increasing marginal costs can be identified using the production function.
The four toys were all marketed for a new kids movie that was coming out, so a lot of kids wanted those four toys becase they had already seen the movie.
Answer:
Return on your investment (ROI) = 17.31%
Explanation:
<em>Return on investment would be the proportion of the amount invested that is earned as profit. Profit here includes dividends earned plus capital gains less broker's commission.</em>
The principles above are illustrated as follows:
Capital gain on stock = stock price at the end - stock price at the beginning
Stock price at the end= 35
stock price at the beginning = 31
Capital gain = (35 - 31)× 140 = 560
Total dividend = 1.51× 140 = 211.4
Commission = 8 + 12 = 20
Net cash return=Capital gain + dividend - commission =560 + 211.4 - 20 =751.4
Return on investment = Net cash return/ cost of stock × 100
ROI = 751.4/ (31×140) × 100 = 17.31%
Return on your investment (ROI) = 17.31%
Answer and Explanation:
The preparation of the analysis is shown below:
Particulars Retained equipment Replace equipment Net income change
Variable cost $1,560,000 $1,230,000 $330,000
($520,000 × 3 years) ($410,000 × 3 years)
New machine cost $300,000 -$300,000
Net change $30,000
So based on the analysis the old machine should be replaced
Therefore we considered all the information given in the question