Answer:
Economic growth can be caused by random fluctuations, seasonal fluctuations, changes in the business cycle, and long-term structural causes. Policy can influence the latter two.
Business cycles refer to the regular cyclical pattern of economic boom (expansions) and bust (recessions). Recessions are characterized by falling output and employment; at the opposite end of the spectrum is an “overheating” economy, characterized by unsustainably rapid economic growth and rising inflation. Capital investment spending is the most cyclical component of economic output, whereas consumption is one of the least cyclical. Government can temper booms and busts through the use of monetary and fiscal policy. Monetary policy refers to changes in overnight interest rates by the Federal Reserve. When the Fed wishes to stimulate economic activity, it reduces interest rates; to curb economic activity, it raises rates. Fiscal policy refers to changes in the federal budget deficit. An increasing deficit stimulates economic activity, whereas a decreasing deficit curbs it. By their nature, policy changes to influence the business cycle affect the economy only temporarily because booms and busts are transient. In recent decades, expansions have become longer and recessions shallower, perhaps because of improved stabilization policy, or perhaps because of good luck.
Answer: See explanation
Explanation:
We should note that microeconomics deal with a particular sector in the economy and not the whole sector. Macroeconomic deals with the whole economy and looks at ways by which the decisions of government have an effect on the whole economy.
Based on the above explanation, the answer is provided below:
• The effect of government regulation on a monopolist's production decisions= Microeconomics
• The effects of government tax policy on long-term economic growth = Macroeconomics
• The optimal interest rate for the Federal Reserve to target = Macroeconomics
Answer:
Net Cash flow in year 4 $46,140<u>
</u>
Explanation:
Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.
Year 4 cash flow ;
$
Operating cash flow $58,500
Working capital recouped 4,950
Scrap value 6,090
Tax payable (40%*58500) <u>(23400
)</u>
Net Cash flow <u> 46,140
</u>
Indicators that the local currency is also the functional currency include all of the following except the parent typically provides the financing or provides a guarantee.
A functional currency is one that is utilized in the main economic setting in which a company conducts business. This is the setting in which an entity generates and spends money most frequently. When defining the functional currency of an entity, the following key considerations should be taken into account:
The principal currency influencing retail prices (usually the currency in which prices are denominated and settled).
The money of the nation whose laws and competition have the biggest impact on retail pricing.
The principal currency affecting labor expenses and other costs of goods sold (usually the currency in which prices are denominated and settled).
The currency in which an entity keeps its operating receipts and the currency in which debt and equity instruments are issued are less important deciding factors.
Know more about functional currency here:
brainly.com/question/28013130
#SPJ4
Answer:
Net income allocated to sally is $112000
Explanation:
Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment. So he will receive the half of what Sally will get.
Let
Sally's pay be x
Andy's pay be x/2
Total Net income is 168000 dollars.
So, putting it in an equation, we get
(x+x/2)=168000
x(1+0.5)=168000
x(1.5)=168000
x= 168000/1.5
x=112000
So Sally's share will be $112000
Andy's share will be x/2
=112000/2
=56000
So Andy share will be $56000
