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Anettt [7]
3 years ago
11

Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have r

isen at an annual rate of 10 percent during the last six months. Which of the following policies would be most appropriate under these circumstances?A reduction in taxes.An increase in taxes.An increase in both government spending and taxes.An increase in government spending.
Business
1 answer:
inysia [295]3 years ago
6 0

Answer:

An increase in taxes.

Explanation:

A rise in the prices is indications that the inflation rate is high.  Policymakers should intervene by introducing contractionary measures that will counter the rising inflation. Fiscal policy measures, such as increasing taxes, reduce inflationary pressures without the risk of causing a recession.

Increase taxes reduces the purchasing power of businesses and individuals, thereby reducing the aggregate demand.  A reduction in aggregated demand lowers production levels, which results in low inflation but increases the unemployment rate.

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Marginal cost increases as the quantity of output increases. This reflects the property o
sleet_krkn [62]

The property of marginal cost increasing as the quantity of output increases is known as diminishing marginal product.

<h3>What is diminishing marginal product?</h3>

Diminishing marginal product states that says as more units of a variable input of production is added to a fixed factor of production, output might increase initially but after a point total output would increase at a decreasing rate and marginal product would begin to decrease.

To learn more about diminishing marginal product, please check: brainly.com/question/10511919

7 0
2 years ago
After high school, Laverne attends a specialized technical school and earns a certificate in farm equipment repair.......... Aft
BARSIC [14]

Answer:

he gets good grades and gets in a good collage

3 0
3 years ago
Read 2 more answers
Requirement 1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E). Asset (A), Liability (L), or Equity (E)?
motikmotik

Answer:

a. Interest Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

b. Accounts Payable

Identification: Liability

Increases with: Credit

Normal Balance: Credit

c. Calhoun, Capital

Identification: Equity

Increases with: Credit

Normal Balance: Credit

d. Office Supplies

Identification: Asset

Increases with: Debit

Normal Balance: Debit

e. Advertising Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

f. Unearned Revenue

Identification: Liability

Increases with: Credit

Normal Balance: Credit

g. Prepaid Rent

Identification: Asset

Increases with: Debit

Normal Balance: Debit

h. Utilities Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

i. Calhoun, Withdrawals

Identification: Equity

Increases with: Debit

Normal Balance: Debit

j. Service Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

5 0
3 years ago
Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 wi
Gwar [14]

Answer:

correct option is b. $167

Explanation:

given data

free cash flow FCF 1 = -$10 million

t = 1

free cash flow FCF 2= $20 million

t = 2

FCF grow rate = 4%

average cost of capital = 14%

to find out

what is the firm's value of operations

solution

first we get here firm value in year 2 that is express as

firm value in year 2 = expected FCF in 3 ÷ (cost of capital - growth)    .........1

put here value

firm value in year 2 = \frac{20*(1+0.04)}{0.14 - 0.04}

firm value in year 2 = 208 million

and

firm value of operation this year will be as

firm value = discounted value in year 2 + discounted FCF1 and FCF2     .............2

firm value = \frac{208}{(1+0.14)^2} +\frac{20}{(1+0.14)^2} +\frac{-10}{(1+0.14)}

firm value = 166.67 = 167 million

so correct option is b. $167

3 0
3 years ago
Widget Maker Manufacturing uses job costing. In​ May, material requisitions were $ 44,300 ​($ 39,700 of these were direct​ mater
Airida [17]

Answer:

Beginning Material = $11,500

Explanation:

given data

material requisitions = $44,300

direct​ materials = $39,700

raw material purchases = $58,100

end month balance raw materials inventory = $25,300

to find out

beginning raw materials inventory​ balance

solution

we know that Beginning Material is express as here

Beginning Material = Ending Material - Purchases + Requisitions ..............1

put here value in equation 1  we get

Beginning Material = Ending Material - Purchases + Requisitions

Beginning Material = $25,300 - $58,100 + $44,300

Beginning Material = $11,500

3 0
3 years ago
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