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rewona [7]
3 years ago
10

Say the marginal tax rate is 30 percent and that government expenditures do not change with output. Say also that the economy is

at potential output and that the deficit is $500 billion. a. What is the size of the cyclical deficit
Business
1 answer:
Nat2105 [25]3 years ago
7 0

Answer: $0

Explanation:

The cyclical deficit occurs when there is a different between the actual output and the potential output. This is why it is calculated by the formula:

= Tax rate * ( Potential output - Actual output)

As the economy here is at the potential output, it means that both the actual and the potential output are the same. In such a case, there would be no cyclical deficit.

This can be proven by the formula:

= Tax rate * ( Potential output - Actual output)

= 30% * (0)

= $0

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The five most important variables that determine the level of ________ are disposable income, wealth, expected future income, pr
klasskru [66]

Answer:  Level of consumption

Explanation:

The level of consumption is one of the process in which the various types of products and the services are basically consumed by the customers.

 The consumption is one of the economical based function that provide a relationship between the spending of the customer and the different types of factors that helps in determining the consumption level.

According to the question, there are basically five important variables which helps in determining the level of the consumption such as the price level, household wealth, the interest rate and also the current disposal income value.  

 Therefore, Consumption is the correct answer.

4 0
3 years ago
If a contract is illegal, may it be voided even if the actors knowingly signed to the terms of the contract?
gregori [183]

<u>Answer:</u> Yes, the contract is considered to be voided.

<u>Explanation:</u>

When a contract is void it has no effect so the parties to the contract need not abide by the terms of the contract. Some of the reasons which make a contract void are as follows:

The subject matter of the contract contains illegal content that is against the statutes and the public policy. The terms of contract are not clear or difficult to fulfill. Fraud, misrepresentation of facts or lack of consideration are other factors where the contract becomes void.

8 0
4 years ago
At the beginning of 2018, Calston Incorporated reports inventory of $10,000. During 2018, the company purchases additional inven
tresset_1 [31]

Answer:

COGS for 2018 :  119,300

Explanation:

We use the inventory identity to solve for Cost of Goods Sold:

$$Beginning Inventory + Purchase = Ending Inventory + COGS

The right side are the input of inventory: it can be from previous prior and purchase from the period. And the left side are the destination, it can be on stock or sold.

We plug our values into the formula and solve for COGS

100,000 + 27,000 = 7,700 + COGS

COGS = 100,000 + 27,000 - 7,700 = 119,300

5 0
3 years ago
Read 2 more answers
What are natural resources referred to as an economics
AlekseyPX

The long-term viability of the food supply depends upon the sustainable use of natural resources. ... The field of Natural Resource Economics seeks to value natural resources to aid in the optimization of the production of goods and services from agricultural lands while protecting the environment.

7 0
3 years ago
Westwick Inc. is an advertising agency. Its employees are allowed to take decisions and work in ways that will help maximize the
Anna35 [415]

Answer:

<em>C) Organizational plurality </em>

Explanation:

Organizational plurality is a working environment in which all representatives are encouraged to collaborate in a way that promotes the gains for the company, clients and themselves.

As with the advertising agency, the employees are given chances to follow their decisions and maximize their experience.

5 0
3 years ago
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