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lakkis [162]
3 years ago
15

Which type of fiscal policy takes longer to affect the economy: demand-side or supply-side?

Business
1 answer:
11Alexandr11 [23.1K]3 years ago
5 0

Answer:

A.) supply-side

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

A supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.

This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.

Hence, a supply-side fiscal policy is typically designed to create an outward shift in the production possibilities curve (PPC) and shift the aggregate supply (AS) curve to the left.

Generally, a supply-side fiscal policy takes a longer period of time to affect the economy of a country.

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3 years ago
Marteena is interested in determining the reasons why people have decided to attend the annual diversity conference at her unive
Rudik [331]

The type of analysis that she should conduct is exploratory. This is involved of experimenting or exploring in a way of finding out the answer to the problem or the study that the researcher is trying to figure out in which Marteena is involved of.

3 0
3 years ago
MC Qu. 95 A job was budgeted to require... A job was budgeted to require 2 hours of labor per unit at $12.00 per hour. The job c
docker41 [41]

Answer:

The direct labor rate variance is negative 16,500

Explanation:

8,000 units at 2hours per unit = 16,000 hours x <em>$12 per hour</em> = $192,000 standart cost for the job

actual 15,000 hours and $196,200 total labor cost

labor cost per hour = 196,200/15,000 = <em>13.1 actual rate per hour</em>

( standar rate - actual rate ) x actual hours = rate variance

(12 - 13.1) x 15,000 = -1.1 x 15,000 = -16,500

5 0
3 years ago
8-year bonds a year ago at a coupon rate of 8 percent. The bonds make semiannual payments and have a par value of $1,000. If the
nexus9112 [7]

Answer:

Current price of bond is $1060.47

Explanation:

Coupon payment = 1000 x 8% = $80 yearly = 80/2 = $40 semiannually

Number of periods = n = 8 years x 2 periods per year = 16

Yield to maturity = 7% yearly = 7% / 2 = 3.5%

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$80 x [ ( 1 - ( 1 + 3.5% )^-16 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^16 ]

Price of the Bond = $80 x [ ( 1 - ( 1.035 )^-16 ) / 0.035 ] + [ $1,000 / ( 1.035 )^16 ]

Price of the Bond = $483.76 + $576.71

Price of the Bond = $1,060.47

7 0
3 years ago
Journalize the entries to record the following transactions for Mountain Realty Inc.:
kherson [118]

Answer and Explanation:

The journal entries are shown below"

On Aug 26

Cash Dr $768,000

         To Common stock $640,000

         To Additional paid in capital $128,000

(Being issuance of the common stock is recorded)

On Oct 1

Cash Dr $410,000

        To preferred stock $410,000

(Being the issuance of the preferred stock is recorded)

On Nov 30

Cash Dr $187,000

         To Common stock $170,000

         To Additional paid in capital $17,000

(Being issuance of the common stock is recorded)

3 0
3 years ago
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