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Salsk061 [2.6K]
3 years ago
12

If an economy is in recession, discuss the differing effects created by a tax cut vs. A GDP-G increase to close the gap. Use the

concept of multipliers in your answer.
Business
1 answer:
borishaifa [10]3 years ago
7 0

Answer:

Explanation:

increase government spending will result in increased aggregate demand, which then increases the real GDP, resulting in an rise in prices. ... Conversely, to close an expansionary gap, the government would increase income taxes, which decreases aggregate demand, the real GDP, and then prices.

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The three categories of managers that stand out with regard to ethical and moral principles in business affaris are
pshichka [43]
Moral managers, amoral managers and immoral mamangers 
4 0
3 years ago
Wolfgang, who is age 33, records AGI of $125,000. He incurs the following itemized deductions for 2018: Medical expenses [$15,00
9966 [12]

Answer:

There is a positive adjustment of $5,200

Explanation:

Medical expenses

$2,500

State income taxes

$0

Charitable contributions

$5,000

Qualified housing interest

$6,000

Casualty loss

$1,800

Miscellaneous itemized deductions

$0

Total

$15,300

There is a positive adjustment of $5,200

6 0
4 years ago
Home Products common stock sells for $36.84 a share and has a market rate of return of 15.8 percent. The company just paid an an
SOVA2 [1]

Answer:

E) 10.95%

Explanation:

Hi, in order to find the "g" or growth rate of this common stock, we need to solve the following equation.

P=\frac{Do(1+g)}{r-g}

Where:

P = Price

g = growth rate

r = market rate of return

Do = last dividend

So, we solve like this

P(r-g)=Do(1+g)

P*r-P*g=Do+Do*g

P*r-Do=Do*g+P*g

P*r-Do=g(Do+P)

\frac{P*r-Do}{Do+P} =g

And now we will have to work with its equivalent numbers

\frac{36.84*0.158-1.61}{1.61+36.84} =g

So, g = 10.95%

Best of luck.

5 0
3 years ago
Angus works as a dairy farmer in Minnesota. He loves his work and finds a great deal of personal satisfaction in providing the h
weeeeeb [17]

Answer:

Explicit costs are the costs which requires the money to pay.

On the other hand, implicit costs refers to the benefit that is foregone by choosing some other work or doing some other activity.

Therefore,

Explicit costs are as follows:

1. Wages pays to his hired hand

2. Buys feed for his cows.

3. Gas expense that is used in truck

Implicit costs are as follows:

1. Foregone income of $27,000 from working at a dairy plant as a technician.

2. Time taken for extracting milk from all the cows.

5 0
3 years ago
Which one of the following types of charitable contributions is NOT deductible for federal income tax purposes?
Fofino [41]

Answer: B.

Explanation: Contributions to individuals, foreign governments, foreign charities, and certain private foundations similarly are not deductible.

3 0
3 years ago
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