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Phantasy [73]
2 years ago
15

g Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession. Instructions: In part a, round your an

swers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers. a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion
Business
1 answer:
Klio2033 [76]2 years ago
7 0

Answer: $5 billion

Explanation:

First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.

Multiplier = 1 / (1 - Marginal propensity to consume)

= 1 / ( 1 - 0.8)

= 5

If the government wants to raise Aggregate demand by $25 billion, they should spend:

Increase in AD = Amount * Multiplier

25 billion = Amount * 5

Amount = 25 / 5

= $5 billion

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Blue Spruce Corp. provides security services. Selected transactions for Blue Spruce Corp. are presented below.
WITCHER [35]

Answer:

Oct. 1 Issued common stock in exchange for $80,500 cash from investors.

Dr Cash 80,500

    Cr Common Stock 80,500

2 Hired part-time security consultant. Salary will be $2,400 per month. First day of work will be October 15.

No entry required

4 Paid 1 month of rent for building for $2,400.

Dr Prepaid rent 2,400

    Cr Cash 2,400

7 Purchased equipment for $22,000, paying $4,900 cash and the balance on account.

Dr Equipment 22,000

    Cr Cash 4,900

    Cr Accounts payable 17,100

8 Paid $600 for advertising.

Dr Advertising expense 600

    Cr Cash 600

10 Received bill for equipment repair cost of $480.

Dr Repairs expense 480

    Cr Accounts payable 480

12 Provided security services for event for $3,900 on account.

Dr Accounts receivable 3,900

    Cr Service revenue 3,900

16 Purchased supplies for $500 on account.

Dr Supplies inventory 500

    Cr Accounts payable 500

21 Paid balance due from October 7 purchase of equipment.

Dr Accounts payable 17,100

    Cr Cash 17,100

24 Received and paid utility bill for $181.

Dr Utilities expense 181

    Cr Cash 181

27 Received payment from customer for October 12 services performed.

Dr Cash 3,900    

    Cr Accounts receivable 3,900

31 Paid employee salaries and wages of $6,200.

Dr Wages expense 6,200

    Cr Cash 6,200

6 0
3 years ago
In a _______, the majority of a nation’s land, factories, and other economic resources are privately owned by individuals or bus
katovenus [111]
In a market economy
8 0
3 years ago
The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation.
Maurinko [17]

Answer:

Vosburgh Electronics Corporation

Classified Balance Sheet

As of December 31, 2021:

Assets

Current Assets:

Cash                                           $67,000

Short-term investments             182,000

Accounts receivable                  123,000  

Allowance for uncollectible         (8,000)

Inventory                                    215,000

Receivables from employees    40,000

Notes receivable (short-term)   67,000

Interest receivable                     12,000

Prepaid expenses (for 2022)    16,000

Total current liabilities                                 $714,000

Long-term Assets:

Land                                         280,000

Building                                 1,550,000

Accumulated depreciation    (620,000)  

Equipment                               637,000

Accumulated depreciation    (210,000)

Patent (net)                              152,000

Franchise (net)                         40,000

Notes receivable                    183,000

Long-term investments          35,000

Total long-term assets                             $2,047,000

Total assets                                               $2,761,000

Liabilities + Equity:

Liabilities

Current Liabilities:

Accounts payable                                     $189,000

Dividends payable (payable on 1/16/2022) 10,000

Interest payable                                            16,000

Income taxes payable                                 40,000

Deferred revenue                                       48,000

Total current liabilities                                                $303,000

Long-term liabilities:

Deferred revenue                                        12,000  

Notes payable                                           300,000

Total Long-term liabilities                                          $312,000

Total Liabilities                                                           $615,000

Equity:

Common stock, 1.4 million authorized

670,000 shares issued & outstanding 2,000,000

Retained earnings                                      146,000

Total Equity                                                            $2,146,000

Total liabilities + equity                                          $2,761,000

Explanation:

a) Data and Calculations:

Account Title                              Debits        Credits

Cash                                        $67,000

Short-term investments          182,000

Accounts receivable               123,000

Long-term investments           35,000

Inventory                                 215,000

Receivables from employees 40,000

Prepaid expenses (for 2022)  16,000

Land                                      280,000

Building                              1,550,000

Equipment                            637,000

Patent (net)                           152,000

Franchise (net)                      40,000

Notes receivable                250,000

Interest receivable                12,000

Accumulated depreciation—building      $620,000

Accumulated depreciation—equipment    210,000

Accounts payable                                       189,000

Dividends payable (payable on 1/16/2022) 10,000

Interest payable                                            16,000

Income taxes payable                                  40,000

Deferred revenue                                        60,000

Notes payable                                            300,000

Common stock, 1.4 million authorized

670,000 shares issued & outstanding 2,000,000

Retained earnings                                      146,000

Totals                            $3,599,000    $3,599,000

Adjustments:

Common stock, 1.4 million shares of no par stock authorized,

670,000 shares issued and outstanding

Receivables from employees are short-term assets

Notes receivable 250,000

Short-term =          67,000

Long-term =         183,000

Deferred Revenue:

Short-term = $48,000 ($60,000 * 80%)

Long-term = $12,000 ($60,000 * 20%)

8 0
3 years ago
Joan bought a business machine for $15,000. In a later year, she sold the machine for $12,800 when the total allowable depreciat
Lady_Fox [76]

Answer:

2,200

Explanation:

15,000 - 12,800 = 2,200

3 0
3 years ago
Swifty Corporation sells its product for $5600 per unit. Variable costs per unit are: manufacturing, $2800, and selling and admi
galben [10]

Answer:

Am nevoie de Puncte

Explanation:

6 0
3 years ago
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