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algol13
3 years ago
7

Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $16 billion. Four economists agree t

hat expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 4 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 2 and the tax multiplier is 8.
Required:
Compute the amount the government would have to increase spending to close the output gap according to each economist's belief.
Business
1 answer:
GarryVolchara [31]3 years ago
5 0

Answer:

Economist A

Government spending multiplier $4billion

Tax multiplier $8billion

Economist B

Government spending multiplier $8billion

Tax multiplier $2billion

Explanation:

Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief

ECONOMIST A

Government spending multiplier=16/4

Government spending multiplier=$4billion

Tax multiplier=16/2

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=16/2

Government spending multiplier=$8billion

Tax multiplier=16/8

Tax multiplier=$2billion

Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :

ECONOMIST A

Government spending multiplier=$4billion

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=$8billion

Tax multiplier=$2billion

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Assume that Jordan ​Enterprises's radio broadcast license is renewable at the end of each 10​-year term and management has provi
yan [13]

Answer:

Jordan Enterprises

1) The impairment loss = $110,000.

2) Journal Entry to record the impairment loss:

Debit Broadcast License Impairment Loss $110,000

Credit Accumulated Impairment Loss $110,000

Explanation:

a) Data and Calculations:

Broadcast license original cost (book value) = $786,000

Market value of similar broadcast license =       676,000

Impairment loss =                                                $110,000

b) US GAAP defines impairment loss as the decrease in an asset's net carrying value.  This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.

8 0
3 years ago
There are 12 general categories of threat to an organization's people, information, and systems. List at least six of the genera
Alenkinab [10]

Answer:

1. Human Error: an example is disregard to safety measures.

2. Compromises to Intellectual Property: an example is piracy of an organization's product.

3. Forces of Nature: an example is earthquake.

4. Information extortion: an example is coercion or blackmail.

5. Quality of service deviation: an example is an epileptic or poor power supply.

6. Industrial espionage: an example is unethical hacking of data.

Explanation:

A threat to an organization's people, information, and systems is basically any circumstances or events that poses a potential danger, damage or adverse affect to its smooth running.

These threats can be classified into six (6) categories and these are;

1. Human Error or failure: this are errors that arise as a result of having incompetent employees (slips and lapses) or mistakes stemming from the workers. <em>An example of human error is an employee that disregard safety measures. </em>

2. Compromises to Intellectual Property: this usually occurs when an intellectual property is stolen illegally from an organization. <em>An example is piracy of an organization's product.</em>

3. Forces of Nature: this is usually caused by a natural disaster. <em>Examples of forces of nature are flood, earthquake, fire etc. </em>

4. Information extortion: this arises when sensitive data about an organization is held through <em>coercion, bribery or computer hacking</em>.

5. Quality of service deviation: this would occur when there's a shortage in the quality of service received by an organization, contrary to what is expected or required. <em>Examples are poor power supply, poor internet service etc. </em>

6. Industrial espionage: this is as a result of loosing sensitive data to <em>unauthorized individuals or hackers.</em>

7 0
3 years ago
The following information is available for Sheridan Company
Arte-miy333 [17]

Answer:

See below

Explanation:

Balance sheet as of December 31, 2022.

Current assets

Account receivable $2,000

Cash $6,280

Supplies $3,790

Total $12,070

Fixed assets

Equipment net $110,300

Inventory $2,810

Total $113,110

Total assets = $12,070 + $113,110 = $125,180

Current liabilities

Accounts payable $3,900

Interest payable $500

Salaries and wages payable $740

Notes payable $32,500

Total $37,640

Financed by;

Common Stock $52,500

Total liabilities + Common stock

= $37,640 + $52,500

= $90,140

6 0
3 years ago
Explain the meaning of rationalization, prototyping and design determination and give an example of each
matrenka [14]

Answer:

rationalization: (1) the action of attempting to explain or justify behaviour or an attitude with logical reasons, even if these are not appropriate.

(2)the action of making a company, process, or industry more efficient, especially by dispensing with superfluous personnel or equipment.

prototyping : (1)an experimental process where design teams implement ideas into tangible forms from paper to digital.

design determination : (1) Design and determination are semantically related in aim topic. Sometimes you can use "Design" instead a noun "Determination".

Explanation:

examples:-

(1) rationalization : a person who is turned down for a date might rationalize the situation by saying they were not attracted to the other person anyway. A student might blame a poor exam score on the instructor rather than their own lack of preparation.

(2) prototyping : cognitive representation of something within a certain category. ... So if you see another dog, you could say that other dog is small (compared to your prototype), heavy, ugly, beautiful, etc.

(3) design determination : testing a new depression medication

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A
Vesnalui [34]

Answer:

D. secured loan

Explanation:

"A secured loan is a loan backed by collateral"

[A. unsecured loan is a loan that doesn't require any type of collateral.]

[B. credit card ...no]

[C. property loan is a secured loan that is sanctioned keeping an asset as mortgage with the lender.]

[D. secured loan is a loan that is backed by collateral]

8 0
2 years ago
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