If the multiplier of government spending is 1.30 and government spending is increased by $150 billion, -165billion the amount by Shift of the demand curve will ultimately shift.
The spending multiplier algebra can be used to determine how much government spending would need to increase to bring the economy back to potential GDP when full employment occurs. Total Expenditure = C + I + G + (X - M).
The multiplier of government effect refers to the theory that government spending intended to stimulate the economy increases private spending, which in turn stimulates the economy. Essentially, this theory posits that government spending will bring additional income to households, leading to increased consumer spending.
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Answer:
$83,000
Explanation:
The computation of the actual manufacturing overhead cost is shown below:
= Indirect labor + depreciation on plant + machinery repair + plant supplies + plant utilities
= $11,000 + $48,000 + $11,000 + $6,000 + $7,000
= $83,000
Only these five items would be considered as a actual manufacturing cost. The rest of the items would be ignored
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
Laissez-faire is an attitude and policy of letting events take their course without interruption.
The French Physiocrats introduced this term.
The adjusted trial balance should be prepared before the financial statements are prepared in order to prove the equality of the debits and credits.
An adjusted trial balance is a listing of all organization accounts that will show up on the budgetary explanations after year-end changing diary sections have been made.
Setting up an adjusted trial balance is the fifth step in the bookkeeping cycle and is the last advance before monetary proclamations can be created.
There are two fundamental approaches to set up an adjusted trial balance. Both ways are valuable relying upon the site of the organization and graph of records being utilized.