An increase in government spending raises income (B) in the short run, but leaves it unchanged in the long run, while lowering investment.
<h3>
What is government spending?</h3>
- All government purchases, investments, and transfer payments are included in what is known as government spending or expenditure.
- Government final consumption spending is defined in national income accounting as the purchase by governments of goods and services for immediate consumption, to primarily meet the individual or collective needs of the community.
- Government investment is defined as the purchase of goods and services by the government with the intention of generating future benefits, such as infrastructure investment or research spending (government gross capital formation).
- Together, these two categories of government spending—on final consumption and gross capital formation—make up one of the primary parts of the GDP.
Therefore, an increase in government spending raises income (B) in the short run, but leaves it unchanged in the long run, while lowering investment.
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Answer:
Proportion of sales of each department.
Explanation:
Advertising expense directly effects the sales of the business. As the campaign is made store-wide sales and it does not directly traceable to any specific department. It need proper basis for allocation of expenses. The proportion of sales of each department is the most suitable basis from all of the given options because the share of benefit from the campaign is received in the form of sale. A campaign might mostly effects the sales.
Answer: marketing managers making pricing decisions.
Explanation:
Management's product and service choices and decisions can influence the cost behavior. The product design, location of plant, technology used in developing a product, product quality, features of product, distribution of product, profit margins, incentives, labor daily wages, and other factors all can influence the cost and pricing decisions of the product.
Answer:
The correct answer is: feasible and efficient.
Explanation:
The production possibility curve or frontier shows the different bundles or combinations of two goods that be produced using the given resources and state of technology.
All the points on the production possibilities curve represent the combinations that are feasible and efficient.
The points below the curve show the points that are feasible but inefficient.
The points above the curve show the points that cannot be attained using the given level or resources and technology.
<span>A corporate bond backed only by a company's promise to pay is called a debenture bond. There is no collateral offered and the parties are acting on faith and predictions in this transaction.</span>
