According to growth accounting studies, a country would achieve better results by promoting

From a Keynesian perspective, the way out of a recession includes an increase in government spending, a tax cut, or an increase

PIT_PIT [208]

The answer is true.

Keynesian contend that because prices are fairly rigid, changes in any aspect of spending including government, consumer, or investment spending can produce changes in output.

For instance, the output will grow if government expenditure rises while all other spending factors stay the same.

The so-called multiplier effect, which is when output grows by a multiple of the initial shift in spending that created it, is also included in Keynesian models of economic activity.

Therefore, a ten billion dollar increase in government spending might result in a fifteen billion dollar increase in total production (a multiplier of 1.5) or a five billion dollar increase (a multiplier of 0.5).

Hence, from a Keynesian perspective, the way out of a recession includes an increase in government spending, a tax cut, or an increase in transfer payments.

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4 0

2 years ago

Allied Parts was organized on May 1, 2013 and made its first purchase of merchandise on May 3. The purchase was for 1,500 units

Mama L [17]

Answer:

the requirements are missing, so I looked for them on similar questions. Journal entries need to be recorded regarding all the transactions with Baker Co.:

May 5, 2013, 900 units sold to Baker Co., credit terms 2/10 n/60

Dr Accounts receivable 13,500

Cr Sales revenue 13,500

Dr Cost of goods sold 9,900

Cr Inventory 9,900

a. May 7, 2013, Baker returns 315 units

Dr Sales returns and allowances 4,725

Cr Accounts receivable 4,725

Dr Inventory 3,465

Cr Cost of goods sold 3,465

b. May 8, 2013, sales allowance given to Baker to compensate damaged units

Dr Sales returns and allowances 525

Cr Accounts receivable 525

c. May 15, 2013, sales allowance given to Baker to compensate wrong color of 14 units

Dr Sales returns and allowances 110

Cr Accounts receivable 110

May 15, 2013, Baker returns 36 units

Dr Sales returns and allowances 540

Cr Accounts receivable 540

Dr Inventory 396

Cr Cost of goods sold 396

5 0

4 years ago

ssume that John Richards pays income taxes at a 30 percent rate. He currently owns a not-for-profit (municipal) bond that pays 5

Luden [163]

Answer:

7.14%

Explanation:

Tax rate applicable for John Richards =30%. So, Post Tax profit for corporate bond will be 70% (1 - 30%) of profit.

Required post tax profit from Corporate Bond is 5%.

Required pretax profit from Corporate bond = 5%/70% = 0.071429 = 7.14%

Therefore, to get 5% post tax profit from corporate bond, the interest rate needs to be set on 7.14% to produce the same amount of usable (after-tax) income.

4 0

3 years ago

Give an outline of the differentiating characteristics of a monopolistic competition and an oligopoly market structure.

Alexus [3.1K]

Both Monopoly and Oligopoly have large market shares. Unlike monopoly where only one business holds 100% of the market, oligopoly is composed of a few businesses that have market shares. Each movement or decision made by any companies in an oligopoly will greatly affect the market.

Monopoly = 100% market share, has a say on supply and price of goods or services offered.

Oligopoly = 2 or 3 companies share the market. Each have at least 33% of the market. Any change made by one business will affect the other remaining businesses.

4 0

3 years ago

Read 2 more answers

Using existing plant and equipment, Priceless Moments Figurines can be manufactured using plastic, clay, or any combination of t

dimaraw [331]

Answer:

a) 20,000

Explanation:

F = 4P + 2C, where P is pounds of plastic and C is pounds of clay. Plastic costs $2 per pound and clay costs $5 per pound.

4P + 2C = 60000 units

Now suppose only plastic is used.

so C=0 and we get 4 P = 40000

i.e P = 10000 pounds of plastic to produce 40000 figurine...

COST = 2 P + 5 C

In this case, its only 2 P

i.e 2 x 10000 = $20000

Now suppose only clay is used.

so P=0 and we get 2 C = 40000

i.e C = 20000 pounds of clay to produce 40000 figurine...

COST = 2 P + 5 C

In this case, its only 5 C

i.e 5 x 20000 = $100000

Hence least cost is $20,000 by using only clay to produce 40,000 figurines

3 0

3 years ago