What sup i am newwwwwww

Use the expenditure multiplier to calculate the change in AD that would result from a $100 million increase in government spendi

adelina 88 [10]

Answer:

If MPC is 0.8, Change in GDP = $500 million

If MPC is 0.95, Change in GDP = $2,000 million

Explanation:

<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount.</em>

It is calculated as follows: 1/(1-MPC).

MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5

Using the first scenario with an increase in government spending by $100million, the resulting change in GDP would be

Change in GDP = change in autonomous expenditure × Multiplier

= 100 × 5 = $500 million

<em>Scenario 2, MPC of 0.95</em>

Expenditure Multiplier = 1/(1-0.95) = 20

Change in GDP= 100 × 20 = $2000 million

6 0

3 years ago

In which phase of the strategic marketing planning process does the firm decide what level of commitment to its ethical policies

jonny [76]

Answer:

The answer is planning

Explanation:

This process involves clarifying the kind of strategic objectives an organization would like to achieve and how this is to be done

7 0

3 years ago

Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $17

katen-ka-za [31]

Answer:

a. Bad Debt Expense 5100 Allowance for Doubtful Accounts 5100

Explanation:

The adjusting entry is shown below:

Bad debt expense $5,100

To Allowance for doubtful debts $5,100

(Being the bad debt expense is recorded)

The computation is shown below:

= Account receivable × estimated percentage - credit balance of allowance for doubtful debts

= $170,000 × 5% - $3,400

= $8,500 - $3,400

= $5,100

In order to recording this transaction, we debited the bad debt expense as it increases the expenses account whereas at the same time it reduces the account receivable therefore the allowance for doubtful debts is credited

7 0

3 years ago

The following trial balance of Oriole Co. does not balance.

Neko [114]

Preparation of a correct trial balance of Oriole Co.

ORIOLE CO. Trial Balance

June 30, 2020

Debit side

Cash $3,305

Accounts receivable $2,666

Supplies $300

Equipment $5,110

Dividends $980

Wages expense $3,900

Office expense $1,345

Total debit balance $17,606

Credit side

Accounts payable $2,605

Unearned service revenue $875

Common stock $6,405

Retained earnings $3,405

Service revenue $4,316

Total Credit balance $17,606

•Cash = $3,275 + $750 - $570 -$75 - $75= $3,305

•Accounts receivable =$2,846 - $750 + $570 =$2,666

•Supplies =$1,205-$905 =$300

•Equipment =$4,205 +$905 =$5,110

•Accounts payable =$3,071- $206 -$260 =$2,605

•Unearned service revenue =$1,605 -$730 =$875

•Service revenue =$2,785 +$890 - $89 +$730 = $4,316

•Wages expense =$3,805 +$1,075 -$980 =$3,900

Learn more here:

brainly.com/question/21497457

7 0

2 years ago

The following credit sales are budgeted by Garcia Company:January $255,000February $375,000March $525,000April $450,000The compa

weeeeeb [17]

Answer:

Total cash to be realized in March = $468,000

Explanation:

As for the provided information, the details are:

Realization of sales:

In the month of Sale = 70%

In the month following sale = 20%

In the next to month following sale = 10%

Thus, for the month of March: Realization shall be:

Sales of March = 70% = $525,000 $\times$ 70% = $367,500

Sales of February = 20% = $375,000 $\times$ 20% = $75,000

Sales of January = 10% = $255,000 $\times$ 10% = $25,500

Total cash to be realized in March = $468,000

7 0

3 years ago