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jolli1 [7]
3 years ago
9

Which policy tools are considered automatic stabilizers?

Business
1 answer:
V125BC [204]3 years ago
6 0

In the fiscal policies of governments, automatic stabilizers are meant to correct and stabilize the fluctuations that arise within the economy of nations. The policy tools that are considered automatic stabilizers are;

  • A progressive income tax structure
  • Government unemployment benefits

At times, the economy of a nation might experience shocks and destabilizations. These policy tools listed above are meant to generate taxes from the citizens that would cushion the effects of these shocks.

They help to increase the flow of money in the economy when it is passing through difficulties like recessions.

Learn more here:

brainly.com/question/24276941

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What is the difference between wacc and marginal cost of capital?
kvv77 [185]
<span>Marginal Cost of Capital may involve less calculation than WACC, however marginal cost may be calculated by incorporating tax rates, overhead, insurance or any other cost associated with acquiring the particular capital.</span>
4 0
3 years ago
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $80,000 a
mezya [45]

Answer:

Jacobs will earn $1,080,000

Explanation:

The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.

Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.

On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.

That is: 1,500,000 - 500,000 = 1,000,000.

Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.

From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.

8 0
3 years ago
Glenda works for a telecommunications company and oversees the planning, execution, and closing of any large telecom projects fo
yarga [219]

Answer:

Project manager

Explanation:

Glenda must be working as a<u> project manager</u>.

<em>A project manager is a person that leads the team to design and execute projects within an establishment. He/she also ensures monitoring and control of resources in order to get maximum results. </em>

Hence, Glenda must have been employed as a project manager for the telecommunication company.

4 0
2 years ago
Think of the market for loanable funds. A policy that induces people to save more or that reduces the governmet's budget deficit
Lisa [10]

Answer:

shifts the supply of loanable funds and reduces interest rates.

Explanation:

The supply and demand curves of money (loanable funds) work in the same way as every other good or service. When the supply of a good or service increases, the supply curve shifts to the right, increasing total quantity supplied and decreasing equilibrium price. When we are talking about loans, the equilibrium price is the interest rate.

8 0
3 years ago
A common stock pays an annual dividend per share of $2.10. The market capitalization rate (required return on equity) is 10.0%.
Inessa05 [86]

Answer:

the  value of the stock is $21

Explanation:

The computation of the value of the stock is given below:

= Annual dividend per share ÷ required rate of return

= $2.10 ÷ 10%

= $21

Hence, the  value of the stock is $21

We simply divided the annual dividend from the required rate of return so that the value of the stock could come

3 0
3 years ago
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