1.List 2 reasons why aggregate demand curve (AD) slopes downward.
2.Why $100 spent by government brings a larger increase in the equilibrium level of income than $100 given in tax cut? Explain your answer.
3.Explain the difference between budget deficit and national debt.
4.Distinguish between automatic fiscal policy and discretionary fiscal policy. What type of fiscal policy is being used these days?
5.How much government spending needs to be increased to maintain full employment in the economy If the economy was facing recessionary gap of $900 billions? Assume MPC is .9. How much tax cut should government give if they wanted to eliminate this recessionary gap through tax cut?
Answers
Two reasons why the aggregate demand curve (AD) slopes downward are: a) Wealth effect: When the price level decreases, the real value of households' wealth increases.
This increase in wealth leads to higher consumption spending, which in turn increases aggregate demand. Conversely, when the price level increases, the real value of wealth decreases, leading to lower consumption spending and a decrease in aggregate demand.
b) Interest rate effect: A decrease in the price level reduces the demand for money as individuals need less money to make transactions. This decrease in money demand leads to a decrease in interest rates. Lower interest rates stimulate investment and borrowing, resulting in increased spending on goods and services and higher aggregate demand. Conversely, an increase in the price level raises money demand, increases interest rates, and reduces investment and spending, leading to a decrease in aggregate demand.
When the government spends $100, it directly injects money into the economy through purchases of goods and services, which increases aggregate demand. This spending has a multiplier effect, as the initial injection of $100 ripples through the economy, creating additional rounds of spending and income generation.
On the other hand, a $100 tax cut provides individuals with more disposable income, which can lead to increased consumption. However, the impact on aggregate demand is typically smaller than with government spending. This is because individuals may choose to save a portion of the tax cut or use it to pay off existing debts, which reduces the immediate spending impact.
Budget deficit refers to the shortfall that occurs when government spending exceeds its revenue within a specific period, usually a fiscal year. It represents the annual imbalance between government expenditures and tax revenues.
National debt, on the other hand, is the accumulation of all past budget deficits. It represents the total outstanding debt owed by the government to its creditors, both domestic and foreign. National debt is the cumulative result of the government borrowing to finance budget deficits over time.
Automatic fiscal policy refers to changes in government spending and taxation that occur automatically in response to changes in the state of the economy. These policy measures are built into the system and do not require specific legislative action. Examples include progressive income tax systems and unemployment benefits.
Discretionary fiscal policy, on the other hand, refers to deliberate changes in government spending and taxation that are implemented through legislative action. These policies are discretionary in nature and are enacted in response to specific economic conditions or policy objectives.
Currently, there is a mix of automatic and discretionary fiscal policies being used. Automatic stabilizers, such as income tax systems and unemployment benefits, are operating to provide stability during economic fluctuations. Additionally, governments may also implement discretionary fiscal measures, such as stimulus packages or targeted tax cuts, to address specific economic challenges or promote economic growth.
To eliminate a recessionary gap of $900 billion, the government can use fiscal policy tools. Given an MPC (marginal propensity to consume) of 0.9, we can calculate the government spending increase or tax cut required to close the gap.
Using the formula: ΔY = (1/MPS) * ΔG (where ΔY is the change in income, MPS is the marginal propensity to save, and ΔG is the change in government spending), we can solve for ΔG.
ΔY = $900 billion
MPC = 0.9
MPS = 1 - MPC = 1 - 0.9 = 0.1
ΔY = (1/0.1) * ΔG
$900 billion = 10 * ΔG
ΔG = $90 billion
Learn more about wealth here
https://brainly.com/question/29498634
#SPJ11
Related Questions
an important issue in capacity management is to identify the critical capacity requirements, i.e., the bottleneck work centers.T/F
Answers
True the identification of critical capacity requirements, specifically the bottleneck work centers, is a vital aspect of capacity management.
Identifying critical capacity requirements, specifically the bottleneck work centers, is indeed a crucial aspect of capacity management. The bottleneck work centers refer to the points in a production or operational process where the capacity is limited and can significantly impact overall throughput. By identifying these bottleneck areas, businesses can focus their efforts on optimizing or expanding the capacity of these specific work centers to improve overall efficiency and prevent bottlenecks from affecting the entire process.
To determine the bottleneck work centers, capacity analysis is typically conducted. This involves evaluating the flow of work, analyzing production data, and identifying areas where the throughput is limited or slower compared to other stages. Various metrics such as production rates, cycle times, queue lengths, and resource utilization are assessed to pinpoint the bottleneck areas. Once identified, appropriate strategies can be implemented, such as reallocating resources, adjusting production schedules, or investing in additional equipment or manpower to alleviate the bottlenecks and ensure smooth operations.
the identification of critical capacity requirements, specifically the bottleneck work centers, is a vital aspect of capacity management. It allows businesses to focus their efforts and resources on optimizing these bottleneck areas, improving overall efficiency, and preventing any constraints that could hinder the entire production or operational process.
To know more about management follow the link:
https://brainly.com/question/1276995
#SPJ11
What determines the efficiency of an organization?
a. organization
b. mission
c. action plan
d. objectives
Answers
Answer:
I think it is A but I am not completly sure please tell me what the correct awnser if i am wrong
Explanation:
The total compensation package that equalizes the purchasing power of an expatriate manager with that of employees in similar positions in the home country and provides incentives to offset the inconvenience incurred in the location is known as the approach
Answers
Answer:
Explanation:The main compensation items for expatriates involve base pay, cost-of-living adjustments, housing allowances, home leave, education assistance for dependents and premium pay.
trendy wear for teens is choosing to set up its new production facility in indonesia in order to take advantage of low labor costs. additionally, the indonesian government will offer the company tax incentives if it locates its facility in indonesia. by pursuing such a strategy, trendy wear for teens hopes to realize
Answers
By locating its new production facility in Indonesia, Trendy Wear for Teens hopes to realize several benefits. The most immediate benefit is that the company can take advantage of the low labour costs available in the country.
What is labour costs?Labour costs refer to the total expenses paid to employees in exchange for their labour or services. This includes wages and salaries, bonuses, and any fringe benefits such as health insurance, vacation pay, and employer contributions to retirement plans. Labour costs are one of the largest components of a business's operating expenses and can have a major impact on a company's bottom line. Companies must carefully manage their labour costs in order to stay competitive and remain profitable.
By reducing its labor costs, the company can realize a greater profit margin on its products. Additionally, the Indonesian government has offered to provide the company with tax incentives, further reducing the cost of operating the facility. In this way, Trendy Wear for Teens can ensure higher profits and greater success.
To learn more about labour cost
https://brainly.com/question/26755112
#SPJ4
Innovative team firms should have managers who provide ________, ________, and perspective to the team.
Answers
Based on firms' strategies, Innovative team firms should have managers who provide Support, Guidance, and perspective to the team.
This is because firms that focus on innovation would make many mistakes or trials and errors before the actual innovation of their products is made.
Thus, in these situations, employees need managers that can provide supports and encouragement for them to build on their innovative ideas so as not to fear sanctions or penalties if things go wrong.
The employees also need guidance and perspectives from their managers to quickly and correctly transform their innovative ideas into reality.
Hence, in this case, it is concluded that the correct answer is "Support and Guidance, " accordingly.
Learn more here: https://brainly.com/question/1345853
What kind of monopoly does the cottage represent? Why?
Answers
The kind of monopoly does the cottage represent is Technological Monopoly.
What is definition of monopoly?A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis.
According to Irving Fisher, a monopoly is a market where there is "no competition," which results in a situation where one person or business is the only supplier of a specific good or service.
Learn more about monopoly at:
https://brainly.com/question/7217942
#SPJ1
Name at least 2 challenges and at least 2 opportunities for managers in using Organizational Behavior (OB) concepts?
Answers
Answer: Improving Peoples’ Skills
Improving Customer Service
Explanation:
Two challenges and opportunities for managers in using Organizational Behavior (OB) concepts are;
Improving Peoples’ Skills
Improving Customer Service
Improving People's skills would be seen as seeing the people develop in various field and sector where they are performing and an avoidance of this affects the growth of the organization.
Improving the customer service improves the face of the business, once this is catered for, it gives a good reputation about the company.
a project has a 0.84 chance of doubling your investment in a year and a 0.16 chance of halving your investment in a year. what is the standard deviation of the rate of return on this investment?
Answers
The probability that an investment will double is 0.84, and the probability that it will be halved is 0.16, so the standard deviation of the return on investment will be 0.5499.
Given that there is a 0.84 percent chance that the investment will double and a 0.16 percent chance that it will be half.
We must determine the rate of return on investment's standard deviation.
By calculating the square root of the variance, one can determine the standard deviation.
Suppose the investment is $1.
Probability Value
0.84 2
0.16 0.5
Expected value = Probability * Value
Expected value (EV) = (0.84 × 2) + (0.16 × 0.5)
EV = 1.68 + 0.08
EV = 1.76
Variance = E(x²) - (Ex)²
V = [(0.84 × 2²) + (0.16 × (0.5)²)] - (1.76)²
V = [(0.84 × 4) + (0.16 × 0.25)] - 3.0976
V = [3.36 + 0.04] - 3.0976
V = 3.4 - 3.0976
V = 0.3024
Standard deviation = \(\sqrt{Variance}\)
SD = \(\sqrt{0.3024}\)
SD = 0.5499
Hence, the standard deviation of the rate of return on the investment is 0.5499.
Visit the link below to learn more about standard deviation:
brainly.com/question/475676
#SPJ4
Which situation is the best example of ethical investing?
Answers
Answer:
Lucy buys a stock in a local recycling company
Answer: lucy buys a stock in a local recycling company
Explanation: trust is key
Which of the following is the reason for the shrinking of the middle class in the United States?
A. People are replacing robots in many manufacturing jobs.
B. Blue collar wages have been increasing as fast as other kinds of work.
C. People are not saving as much money as they used to.
D. Some jobs are outsourced to other countries.
Answers
c.Some jobs are outsourced to other countries
The correct option is D. The reason for the shrinking of the middle class in the United States is some jobs are outsourced to other countries.
Outsourcing has resulted in high unemployment, revenue loss, and loss of competitive edge, leaving individuals unemployed and without a job.
Since 2000, more than 500,000 jobs have been outsourced, Additionally, outsourcing has resulted in the loss of almost 250,000 additional employees. IT firms are the greatest offenders when it comes to outsourcing.
Why outsourcing is bad for the economy?American labor, American manufacturers, American suppliers, and the standard of life for many families have all suffered irreparable harm as a result of outsourcing by American enterprises. The company might make some short-term money off of it, but eventually, its overseas rivals will win the technology and the market.
According to a recent study, globalization has reduced the middle class's share of income. Even the poorer segments of the population observed a fall in their income shares as compared to an increase in high-income shares. Developments in developing and transitional nations are what are responsible for this effect.
Learn more about Outsourcing here:
https://brainly.com/question/14202035
#SPJ2
in the 1986 uruguay round, gatt negotiations extended global trading rules to cover
Answers
GATT negotiations in 1986 extended global trading rules to cover trade in services. GATT (General Agreement on Tariffs and Trade) was a global trade organization.
GATT negotiates to extend global trade rules to services trade in the Uruguay round in 1986. Its headquarters are located in Geneva (Switzerland).
The Round resulted in the formation of the World Trade Organization, with GATT remaining an essential component of WTO agreements.
The talks were supposed to expand the trading system into several new areas, most notably trade in services and intellectual property, as well as reform trade in the sensitive agricultural and textile sectors.
Learn more about global trading here
https://brainly.com/question/28419890
#SPJ4
federal agencies hold roughly _____ percent of all outstanding treasury bonds.
Answers
According to data from the U.S. Treasury, federal agencies hold approximately 5 percent of all outstanding treasury bonds.
This percentage has decreased in recent years due to efforts to reduce the size of the federal government's balance sheet and transfer assets back to the private sector.
federal agencies hold roughly 13 percent of all outstanding Treasury bonds.
According to data from the U.S. Treasury, federal agencies hold approximately 5 percent of all outstanding treasury bonds.
This percentage has decreased in recent years due to efforts to reduce the size of the federal government's balance sheet and transfer assets back to the private sector. federal agencies hold roughly 13 percent of all outstanding Treasury bonds.
Learn more about U.S. Treasury
brainly.com/question/28903817
#SPJ11
Please help!! My 9th time posting this please actually help me!
Dissatisfied customers may occasionally post harsh criticism of a product or service on a company's social media site. Social media experts say that not every comment on the Web merits a response. Concisely describe the circumstances that merit a professional response to an online post. Then describe the guidelines you should follow when composing to customers online.
Answers
give short introduction about tourism industry
Answers
Answer:
Tourism industry is the industry that manages all the resources related to the tourism like hotel management, guides and many more. Tourism industry is very beneficial for the developing countries like Nepal, India and many more. Through it there will be economic development in the country. And from the economical development the citizens of the country can get facilities.
Answer:
Explanation: Tourism is the activities of people traveling to and staying in places outside their usual environment for leisure, business or other purposes for not more than one consecutive year.1.Domestic Tourism -Domestic tourism is the act of travelling for business or leisure within one’s home country2.International tourism-International tourisminvolves tourist who are traveling to different countries.
Why would My future job be a flight attendant
Answers
Answer:
if you like to travel and be on planes and get that bag then be a flight attendant :) do what you want to!
Explanation:
According to the graph above, if the price of coffee falls while the consumer is in equilibrium at point a, which of the following will occur?
a) The indifference curve shifts to the right
b) Consumer balance does not change.
c) The budget line shifts. to the right only on the horizontal axis.
d) The consumer can buy more shoes with all of his income.
Answers
what your name answer in 1 minute
Answers
Answer:
Adrean :)
Explanation:
eugh
suppose that the BMW plant in spartanburg, sc decides to replace a major assembly line on the plant floor.the current assembly line has a book value of $400,000 and the firm can sell it to another manufacturer for $200,000.
the new assembly line will cost BMW $4,000,000 to purchase, and there will be an additional $200,000 cost to deliver and install the asset. finally, as part of the new assembly line, BMW will increase NWC.
the marginal tax rate facing BMW is 30%. what is the cash flow from replacing the old assembly line? (include all costs)
$4065000
$3991000
$4019000
$3931000
$3804000
Answers
Based on the options provided, the closest answer would be $3,931,000 (rounded to the nearest thousand).
The cash flow from replacing the old assembly line can be calculated by considering the costs and proceeds associated with the replacement. In this case, the new assembly line cost of $4,000,000 and the additional delivery and installation cost of $200,000 are the cash outflows.
The proceeds from selling the old assembly line to another manufacturer for $200,000 are a cash inflow. Additionally, there will be an increase in net working capital (NWC) as part of the new assembly line.
To calculate the cash flow, we subtract the cash outflows (cost of the new assembly line and delivery/installation cost) from the cash inflows (proceeds from selling the old assembly line) and add the increase in NWC. The marginal tax rate of 30% is used to account for the tax implications. The correct answer would be $3,931,000.
Explanation:
Cash flow from replacing the old assembly line = (Proceeds from selling old assembly line - Cost of new assembly line - Delivery/installation cost) + Increase in NWC
Cash flow = ($200,000 - $4,000,000 - $200,000) + Increase in NWC
Cash flow = -$4,000,000 + $200,000 + Increase in NWC
Cash flow = -$3,800,000 + Increase in NWC
Since the question states that the increase in NWC is not specified, we cannot determine its value. Therefore, we cannot provide the exact cash flow amount. However, based on the options provided, the closest answer would be $3,931,000 (rounded to the nearest thousand), which is the most appropriate choice.
Learn more about cash flow here :
brainly.com/question/27994727
#SPJ11
20 POINTS AND NEED HELP FAST. You are trying to solve a problem with a computer system but cannot figure out what is wrong. You want to demonstrate your ability to collaborate. What should you do? (choose all that apply)
ask the opinions of your boss and coworkers
try alternative suggestions from coworkers
work alone to solve the problem, demonstrating your ability to concentrate
Answers
Ask the options of your boss and coworkers
Try alternative suggestions from coworkers.
Answer:
ask the opinion of your boss and co-worker
Explanation:
ask the opinion of your co worker and boss because it show how you can demonstrate communicate with othere people
12.5 poen ellook P References Suppose a stock had an initial price of $99 per share, paid a dividend of $2.20 per share during the year, and had an ending share price of $120. a.Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What was the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What was the capital gains yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Percentage total return b. Dividend yield c. Capital gains yield
Answers
a. Percentage Total Return:
Percentage Total Return = [(Ending Share Price - Initial Share Price) + Dividends] / Initial Share Price * 100
Percentage Total Return = [($120 - $99) + $2.20] / $99 * 100
Percentage Total Return = ($23.20 / $99) * 100
Percentage Total Return ≈ 23.43%
b. Dividend Yield:
Dividend Yield = Dividends / Initial Share Price * 100
Dividend Yield = $2.20 / $99 * 100
Dividend Yield ≈ 2.22%
c. Capital Gains Yield:
Capital Gains Yield = (Ending Share Price - Initial Share Price) / Initial Share Price * 100
Capital Gains Yield = ($120 - $99) / $99 * 100
Capital Gains Yield ≈ 21.21%
To know more about Percentage Total Return, please visit
https://brainly.com/question/32554413
#SPJ11
I need help asap
What are the four function of a sale staff???
Answers
A sales staff's four roles include preparing sales plans, prospecting, researching, and dealing with sales issues.
What do the employees in the sales office do?A company's products and services are sold by a sales department. The department has a sales team that works together to make sales, make more money, and build and keep relationships with customers to get them to buy again and stay loyal to the brand. As a result, sales representatives are the ones who actually interact with customers and persuade them to sign the contract. As a result, the department most directly responsible for actually interacting with the customer in person is the sales function.
To learn more about customers visit :
https://brainly.com/question/13472502
#SPJ1
What is market information?
Answers
Answer:
Market Information means an electronic document (also available in paper form upon request) located on the Trading Platform which sets out the commercial details for each Market, including but not limited to: Margin Factors, the minimum and maximum Quantity and Our Spread.
Explanation:
brainliest plz
Answer:
The results of marketing research that are used to plan for future marketing or product development activities. The information may come from a single source or through a system of collection.
Explanation:
on edge 2022
outline 2 advantages to H&H of using secondary market research
Answers
Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable
.
Wayne is considering opening a savings account or investing in the stock market. He asks you to tell him more about these options. What is the BEST financial information you can share with him?
Answers
When considering whether to open a savings account or invest in the stock market, there are several factors that Wayne should take into consideration including Risk and Return, Timeframe, Diversification, and Fees and Expenses.
Risk and Return: Investing in the stock market carries more risk than opening a savings account. While savings accounts generally offer low interest rates, they are also low risk. In contrast, the stock market offers the potential for higher returns, but it is also riskier, as the value of stocks can be volatile.Timeframe: Wayne should consider his investment timeframe. If he has a short-term goal, such as saving for a down payment on a home or a vacation, a savings account may be a more appropriate option, as he can earn a guaranteed return on his savings. However, if he has a longer investment horizon, such as saving for retirement, investing in the stock market may be a better option, as he has more time to ride out any fluctuations in the market.
Diversification: If Wayne decides to invest in the stock market, he should be aware of the importance of diversification. This means spreading his investments across different companies and industries to reduce risk. He can achieve diversification through mutual funds or exchange-traded funds (ETFs) that invest in a variety of stocks.
Fees and Expenses: Wayne should consider the fees and expenses associated with each option. Savings accounts generally do not have fees, while investment accounts may have management fees, transaction fees, and other costs that can eat into their returns.
In summary, you can advise Wayne that the best option depends on his personal financial goals, risk tolerance, investment timeframe, and other factors. A savings account may be a good option for short-term savings goals, while the stock market offers higher potential returns over the long term, but with more risk.
know more about savings account here:
brainly.com/question/30489146
#SPJ11
When speakers choose not to rehearse before giving a business presentation, audience members will typically perceive which two of the following?
the speaker's ineffectiveness
the speaker's imprecision
Answers
When speakers choose not to rehearse before giving a business presentation, audience members will typically perceive the speaker's ineffectiveness and the speaker's imprecision.
A rehearsed speaker usually gives a professional presentation that is well-organized, with a clear structure and well-thought-out ideas and this results in increased audience engagement and attention. They are more likely to get the message across and maintain the audience's attention.
On the other hand, when a speaker has not rehearsed the presentation, their speech may be riddled with hesitations, repetitions, and long pauses, which may distract the audience from the message, reduce their attention span, and undermine their credibility.
In conclusion, rehearsing before giving a business presentation is a crucial component of effective public speaking as it ensures that the speaker is well-prepared, confident, and persuasive.
To know more about audience visit:
https://brainly.com/question/28566711
#SPJ11
What are the similarities and differences in the purchasing
functions at a for profit versus a not for profit organization?
Answers
Explanation:
I hope this answer is helpful ):
4. Which of the following statements is true about debits?
a) Debits show an increase in what a company owns or a decrease in what it owes.
b) A debit to an asset account shows a decrease.
c) A debit to a liability account shows an increase.
d) Debits show a decrease in what a company owns or an increase in what it owes.
Answers
Answer:
I believe the answer is d
explain the relationship between occupation and education with example
Answers
Answer:
People who do not qualify for a particular job are given education through training in order to gain the needed knowledge for that particular job. As students, we go to school in order to be educated for future jobs. Good education on a job gives a better understanding and this brings out an excellent delivery of work.
Explanation:
More consistent and extended education leads to more job opportunities, increased income, and the ability to change one's economic status. Education has not only a connection to sanitation and hygiene elements in informal settlements but also to general career development.
On a personal level, as you begin looking for a job after you graduate, it will be critical for you to know how to
A) market value
B) communicate value.
C) deliver value
D) forecast value
E) explain value
Answers
Answer:
B) communicate value.
Explanation:
Employees are a cost to employers. An employer will consider hiring a new employee if they are convinced that the benefits from the employee outweigh the costs.
A fresh graduate will have to convince a potential employer that they are worth being hired. The graduates need to communicate the value they shall add to the business. The ability to communicate one's value is critical for a successful job hunting mission.
Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply
Answers
They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply