The consumer surplus after the tax and subsidy benefit can be identified, whereas the opportunity cost may be harder to identify.
What is subsidy ?A subsidy is a direct or indirect payment to an individual or business, usually in the form of a cash payment from the government or a targeted tax relief. In economic theory, subsidies can be used to offset market failures and externalities and increase economic efficiency.For example, if the government sends financial aid reimbursing him 15% of all medical expenses to a group that pays 15% income tax. Exactly the same subsidy is achieved by granting a health tax credit.Tax subsidies are also called tax incentives. Tax cuts are often viewed as subsidies.The purpose of the subsidy is to support or support key sectors of the economy or national infrastructure. While subsidies can have direct positive effects on industries and companies involved, economists argue that subsidies impede free trade and create market inefficiencies.To learn more about subsidy from the given link :
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The crowding‑out effect describes a scenario in which federal deficit spending causes:.
The crowding‑out effect describes a scenario in which federal deficit spending causes:. increased interest rates, which reduces private spending.
What is the crowding out effect?According to the crowding out effect, declining private sector spending is caused by growing public sector spending.
Infrastructure, social welfare, and economics are the three main causes of the crowding out effect.
Contrarily, crowding in shows that borrowing from the government may actually boost demand.
This type of borrowing's sheer size can cause real interest rates to rise significantly, which has the effect of saturating the economy's lending capacity and deterring companies from making capital investments.
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How are securities issued by the state and local governments and corporate bonds similar ?
How are they different ?
The similarity between government bonds and corporate bonds are:
they are exposed to interest rate riskthey have credit or default riskThe difference between government bonds and corporate bonds is that the corporate bonds are issued by corporations and offer a higher yield relative to a government bond due to the higher risk of insolvency.
What are corporate bonds and government securities?Basically, a securities refers to a financial instrument that has monetary value and can be traded. They are classified as either equity securities such as stocks and debt securities such as bonds and debentures.
In a financial market, there are two entities that issues bonds which are government and private companies. All bonds issued by the government are called government bonds while the bonds issued by private organisations are called corporate bonds.
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when patey pontoons issued 10% bonds on january 1, 2024, with a face amount of $720,000, the market yield for bonds of similar risk and maturity was 11%. the bonds mature december 31, 2027 (4 years). interest is paid semiannually on june 30 and december 31. required: determine the price of the bonds at january 1, 2024. prepare the journal entry to record their issuance by patey on january 1, 2024. prepare an amortization schedule that determines interest at the effective rate each period. prepare the journal entry to record interest on june 30, 2024. what is the amount related to the bonds that patey will report in its balance sheet at december 31, 2024? what is the amount related to the bonds that patey will report in its income statement for the year ended december 31, 2024? (ignore income taxes.) prepare the appropriate journal entries at maturity on december 31, 2027.
1) The cost of the bonds is 697197 as of January 1, 2024.
2) the journal entry to reflect Patey issuing them on January 1st, 2024
Dr. Cash A/c 697197
To Bond Payable Account 22803 Discount
Bonds payable at Account Number 720000
3) In the amortization schedule, interest costs are computed using the carrying value of the bond and the semi-annual market rate of interest.
4) the entry to be made in the journal on June 30, 2024, for interest:
Dr. 38346: Interest Expense
To Discount on Bond Payable A/c 2346 To Cash 36000
5) According to Patey's financial sheet as of December 31, 2024, the amount associated with the bonds is 702017.
6) Patey will report $76,821 in bond-related expenses on its income statement for the fiscal year that ends on December 31, 2024.
7) the required journal entries on December 31, 2027, maturity:
31-Dec-27 Interest Cost Account Number 39411
To Cash Account 36000 From Discount on Bond Payable A/C 3411
31-Dec-27
Bond Payable A/c Dr 720000 To Cash A/c 720000
1) Bond prices as of January 1, 2024, are as follows:
Values in the chart are based on:
n= (4 * 2) = 8 years Half years
i= (11% / 2) = 5.50% Semi-annual
Cash Flow Table Value * Amount = Present Value
Principal 0.65160 * 720000 = 469152
Interest (Annuity)
[$720,000*10%*6/12] 6.33457 * 36000 = 228045
Price of Bonds 697197
Bond prices are determined by the present values of the principal and interest.
2) The following is the journal entry to reflect the bond issuance:
01-Jan-24 Cash A/c Dr 697197
To Discount on Bond Payable A/c 22803
To bonds payable A/c 720000
(Being a discount-priced bond)
3) Bond Amortization Schedule
Date Cash Interest Discount Unamortized Carrying
Interest Expense Amortization Discount Value
01-Jan-24 22803 697197
30-Jun-24 36000 38346 2346 20458 699542
31-Dec-24 36000 38475 2475 17983 702017
30-Jun-25 36000 38611 2611 15372 704628
31-Dec-25 36000 38755 2755 12617 707383
30-Jun-26 36000 38906 2906 9711 710289
31-Dec-26 36000 39066 3066 6645 713355
30-Jun-27 36000 39235 3235 3411 716589
31-Dec-27 36000 39411 3411 0 720000
Interest costs are calculated using the bond's carrying value and the semi-annual market rate of interest.
4) 30-Jun-24 Interest Expense Dr 38346
To Discount on bond payable A/c 2346
To Cash 36000
(To register Interest as of June 30, 2024)
5) As per the Bond Amortization Schedule, Bonds reported on December 31, 2024, are equal to 702017.
6) The total of the year's recognized semi-annual interest expenses is the amount of interest expense to be shown on the income statement.
amount pertaining to the bonds that Patey will disclose on its income statement for the fiscal year ending December 31, 2024 = 38346 + 38475
Therefore, the Interest Expense to be reported in the Income Statement will amount to $76,821
7) At maturity, appropriate journal entries are prepared as follows:
31-Dec-27 Interest Expense A/c Dr 39411
To Discount on bond payable A/c 3411
To Cash A/c 36000
31-Dec-27 Bond Payable A/c Dr 720000
To Cash A/c 720000
(Both interest costs and principal payments are made at maturity.)
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a. how much will gdp change after a $545 billion increase in government purchases, if the multiplier is 1.5?
The GDP of a country will change by $817.5 billion after a $545 billion increase in government purchases if the multiplier is 1.5.
Gains in total output are greater than the shift in spending that created them in terms of the gross domestic product (GDP), thanks to the multiplier effect. The correlation between government spending and the gross domestic product is commonly referred to as a multiplier.
The deposit multiplier, a term used to describe fractional reserve banking, is another example of a multiplier in operation. There are several instances where multipliers are used, such as when trading on margin or when money is multiplied in fractional reserve banking.
The different categories of multipliers include:
fiscal multiplierinvestment multiplierearnings multiplierequity multiplierLearn more about GDPs and multipliers here:
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many business decisions are made in hopes of improving a firm's bottom line. which of the following financial statements will reveal a firm's bottom line?
A. income statement
B. trial balance
C. statement of cash flows
D. balance sheet
Answer:
A. income statement
Explanation:
income is the correct answer
performance appraisals are conducted in order to group of answer choices document employee performance for pay and reward decisions. provide employees with feedback for developmental purposes. distribute bonuses, pay increases and promotions. all of the above
Performance appraisals are conducted in order to document employee performance for pay and reward decisions, provide employees with feedback for developmental purposes, distribute bonuses, pay increases and promotions. Thus all of the above is the answer.
What purposes do performance evaluations serve?A performance assessment, frequently abbreviated as "PA," is a periodic and systematic procedure whereby an employee's job performance is documented and assessed. It is also known as a performance appraisal, performance evaluation, development talk, or employee appraisal. These evaluations are intended to identify both strengths and deficiencies in order to improve performance moving forward.
Performance reviews have significant financial benefits when done well. They can, among other things, increase worker morale and engagement, make expectations clear, assist in getting the most out of employees, and reward effort and dedication. Not just businesses profit from this, though. Clear channels of communication help to easier for employees to raise concerns, express themselves, find their right path, feel appreciated, and be rewarded when they do a good job.
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What are three topics you should avoid in all interviews? Why are these topics problematic?
The three topics that should be avoided at interviews are, bad relations with past employers, too much personal information, past failures.
What is an interview?An interview is a verbal communication that occurs between a potential employee and the employers, the interview is a short conversation and should be carried perfectly by the potential employee as there are three topics that should be avoided or discussed at minimal at interview.
Bad relations with past employers is a major turn down for an interview candidate. Expressing too much of personal information can be over information for the employers as they are more interested in candidate's qualification and past experience rather than the personal information. Discussing past failures in a interview can become negative and would reflect a wrong personality.
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which of the following is omitted in a barter transaction?a) tradeb) medium of exchangec) store of valued) money
Money is omitted in a barter transaction.In a barter transaction, two parties trade one basket of goods and services for another basket containing additional goods and services.
What is barter transaction?A barter transaction entails two parties and involves the exchange of one basket of products and services for another basket including other commodities and services. without a related monetary payment.In the alternative trading system of barter, products and services are traded directly for one another without the use of money as a middleman. For instance, a farmer may trade a pair of shoes from a shoemaker for a bushel of wheat.Several different kinds of barter exchanges are briefly described and explained here.Direct bartering is the direct exchange of goods or services between two or more parties.retail barter is exchanged between small enterprises through a trade exchange that is locally arranged.To learn more about barter transaction refer to:
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what is the price of a zero coupon bond that has a par value of $1,000 and 5 years to maturity if the yield on similar bonds is 6%?
The price of a zero coupon bond is $747.27.
M = the date of maturity = $1,000
r = Interest Rate = 6%= 0.06
n= number of years =5 year
zero coupon bond: Price = [tex]M / (1 + r)^n[/tex]
= [tex]\frac{1000}{(1+0.06)^5}[/tex]
=$ 747.27
What is zero coupon bond?A zero-coupon bond also known as a cumulative bond, is a debt security that pays no interest but trades at a deep discount and produces a profit at maturity when the bond is redeemed at full value.
Some bonds are issued as zero-coupon instruments from the outset, while other bonds become zero-coupon instruments after the financial institution de-coupons them and repackages them as zero-coupon bonds. Because zero-coupon bonds offer full payment at maturity, they vary in price much more than coupon bonds.
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select all that apply a corporate charter: multiple select question. is required only for publicly-traded corporations. describes the business activities. specifies the shares of stock to be issued. specifies the number of shares outstanding. names the board of directors.
The statements that apply to a corporate charter are:
names the board of directors.describes the business activities. specifies the shares of stock to be issued.What is a corporate charter?A corporate charter refers to a legal document that licenses a company to operate in a certain area. This charter includes a number of things to make the company's operations legitimate.
One is that it includes the name of the board of directors and also includes what exactly the business activities will be. The number of stock to be issued for ownership is also specified.
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on october 1, george jones entered into a contract with johnson motor company, a dealer in automobiles, to buy a car for $10,600. he paid $1,100 down and agreed to make monthly payments thereafter of $325 each. although he made the first payment on november 1, he failed to make any more payments. jones was seventeen years old at the time he made the contract, but he represented to the company that he was twenty-one years old because he was afraid the company would not sell the car to him if it knew his real age. his appearance was that of a man of twenty-one years of age. on december 15, the company repossessed the car under the terms provided in the contract. at that time, the car had been damaged and was in need of repairs. on december 20, george jones became of age and at once disaffirmed the contract and demanded the return of the $1,425 paid on the contract. when the company refused to do so, jones brought an action to recover the $1,425, and the company set up a counterclaim of $1,500 for expenses it incurred in repairing the car. who will prevail? why?
The liability for misrepresentation of age will prevail.
What is misrepresentation of age?In order to get a benefit or rights that might otherwise be denied to them, a person may misrepresent their age by lying to them or misleading them in another way. The charges for these kinds of offenses frequently read "Misrepresentation of Age by a Minor," as they are typically committed by juveniles. However, age fraud can happen in a variety of other contexts and can be carried out by a wide range of individuals or groups of individuals. Up to a year in jail and/or monetary penalties are possible for misdemeanor offenses. Due to the prevalence of minors as parties in these cases, the defendant may frequently be subject to juvenile-specific penalties, such as community service projects or time spent in juvenile detention.
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Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?
A) objectives and goals
B) a mission statement
C) a business portfolio
D) marketing and functional strategies
E) operational strategies
What is our business? Who are our customers? What do our customers value? What should our business be? The answer to these questions is provided by a mission statement. Thus, option (B) is correct.
What is business?Business refers to the activity of producing, buying, selling, and exchanging goods or services for profit. The ultimate goal of business is to create value for customers and generate profits for its owners or shareholders
It involves a range of processes such as identifying customer needs, developing products and services, setting prices, marketing and advertising, managing finances, and providing customer service.
What is our business? Who are our customers? What do our customers value? What should our business be? A mission statement gives answer to these questions. Therefore, option (B) is correct.
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true or false: from 1900 to 2010, the average stock market risk premium of the united states was the highest of all countries.
It is untrue that from 1900 to 2010, the United States' average stock market risk premium was the greatest of any nation.
What does the US market risk premium look like?This means that, in exchange for the risk they assume, investors in that nation seek a slightly lower return on their investments. This premium has been largely within the range of 5.3% and 5.7%.The term "historical market risk premium" describes the discrepancy between the return an investor anticipates from an equity portfolio and the return on risk-free investments. A theoretical figure used to describe the rate of return on an investment with no risk is known as the risk-free rate of return.The risk premium calculation is relatively easy: Simply take the risk-free rate, which is basically the current interest rate paid on risk-free investments like government bonds and Treasuries, and subtract the predicted return on the given asset.To learn more about Market risk premium refer to:
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manuel has been hired by a clothing distributor based in ireland. it is his job to travel to u.s. clothing manufacturers and try to purchase denim products at the lowest price possible. he then receives a commission based on his results. which type of export service provider does manuel work for?
Manuel works as a Confirming house export service provider.
What do you understand by service provider?An organization that offers services to other organisations, such as consulting, legal, real estate, communications, storage, and processing, is referred to as a service provider. A service provider is typically a third-party or outsourced supplier, while it is possible for it to be a division of the company it serves. Service providers are people or businesses that offer services to businesses and other parties. They offer network, processing, and storage services. The service providers provide real estate, communication, educational, legal, and consulting services to organisations. a business that trades on behalf of international customers. Typically, confirmation houses make domestic orders in the countries of the suppliers, arrange for export processing and delivery to the customer, and locally pay the suppliers on behalf of their foreign principals.
Hence, Manuel works as a Confirming house export service provider.
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currently, 3m company pays an annual dividend of $3.87. if the stock is selling for $90, what is the dividend yield? (enter your answer as a percent rounded to 1 decimal place.)
The 3m Company currently distributes a $3.87 annual dividend. The dividend yield is 4.6% if the stock is trading at $90.
Dividend per share by share price equals the dividend yield, also known as the dividend-price ratio of a share. If the number of shares remains constant, it is also the total annual dividend payments made by a firm divided by its market capitalization. It's frequently stated as a percentage.
Dividend yields will differ by industry and sector. At first glance, some dividend yields may appear insignificant, whereas relatively high yields, such as those over 5%, frequently attract a lot of attention.
Annual Dividend = $3.87
The stock is selling at $90 , so,
Stock Price = $90
Dividend Yield = Annual Dividend / Stock Price
Dividend = $3.87 / $90 = 0.046
Therefore, Dividend Yield = 4.6%
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When a country exports more than it imports, this is known as a trade _________.
Answer:
trade deficit hope it helps
suppose the equilibrium price of good x is $25 and the equilibrium quantity is 124 units. if the price of good x is $2: question 28 options: a) there will be an excess supply of good x. b) the quantity demanded of good x will be less than 124 units. c) the market is at equilibrium. d) there will be excess demand for good x.
The equilibrium price of good x is $25 and the equilibrium quantity is 124 units. if the price of good x is $2: d) there will be excess demand for good x.
It is possible to utilize a mathematical formula to determine the equilibrium price. The equilibrium pricing formula is based on amounts of supply and demand; to find the price, put quantity desired (Q d) equal to quantity supplied (Qs) (P).
The price at which the quantity of good X demanded and X supplied equals exactly one unit, or the price at which the market "clears," is the equilibrium price for good X. In each market, the equilibrium price is the one where supply and demand are equal.
Thus, $6 a pound is the market's equilibrium price for coffee. The quantity that is required and provided at equilibrium pricing is known as the equilibrium quantity.
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The ________ role involves managers making decisions about who gets what, how much, when, and why.
The Resource Allocator role involves managers making decisions about who gets what, how much, when, and why.
Who is a Resource Allocator?The practise of assigning and managing resources in a way that meets an organization's strategic planning objectives is known as resource allocation. Allocating resources involves managing hard assets like hardware to maximize the usage of soft assets like human capital. The distribution of resources is primarily divided into two categories: continuous and one-time. Resources can be distributed in the context of an entire economy using a variety of mechanisms, such as markets or planning. The practice of assigning and managing resources in a way that meets an organization's strategic planning objectives is known as resource allocation. Resource management comprises controlling hard assets like hardware to maximize the utilization of soft assets like human capital.
Hence, The Resource Allocator role involves managers making decisions about who gets what, how much, when, and why.
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Originated by frederick brooks, what term describes the situation that is caused by the increased complexity of communications that result from adding more people to a project?.
The phrase "Adding personnel to a late software project makes it later" refers to the fact that when a person is added to a project team while it is already behind schedule, the project time actually increases rather than decreases.
What among the following best describes Brooks law?According to the software project management principle known as Brooks' law, adding personnel to a project that is already running behind schedule only makes it worse. In his 1975 book The Mythical Man-Month, Fred Brooks used it as a term.
What does the software project management Brooks formula entail?Engineering Individuals & Teams Features of business products. The phrase "adding human resources to a late software project makes it later" was first used by Fred Brooks forty years ago and has now become known as Brooks's Law. Since then, empirical study has supported that theory.
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stagflation may result from: group of answer choices a decrease in the supply of money. a decrease in the price of imported oil. an increase in personal income taxes. an increase in the price of imported oil. an increase in the supply of money.
Stagflation may result from an increase in the price of imported oil. The correct answer would be option D.
An economic cycle known as stagflation is characterized by weak growth, a high unemployment rate and inflation. This confluence is particularly challenging for economists to manage because trying to address one of the issues can make another worse. Stagflation, which economists formerly believed to be impossible, has repeatedly happened in the industrialized world since the oil crises of the 1970s.
According to some, stagflation happens when an economy's capacity for production is decreased by a sharp spike in the price of oil. The best illustration is the oil crisis in the 1970s. The Organization of Petroleum Exporting Countries imposed an embargo on Western nations in October 1973. Due to this, the price of oil increased dramatically on a global scale, driving up the cost of goods and fueling a rise in prices.
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all products that an organization sells constitute its ____________.
All products that an organization sells constitute its Product Mix.
A product mix is the totality of product lines and individual products or services offered by a company. Also known as product range or product portfolio. Product combinations vary by company.
Product mix, another name for product assortment, refers to the multiple products that a company offers to its customers. For example, consider a company that sells multiple product lines that are very similar to each other, such as: B. Toothpaste, toothbrush, mouthwash, and other toiletries.
The main function of the product mix is to introduce the company to a particular product and how to promote it to as many customers as possible. A good product mix can provide detailed information about individual products and target customers.
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level of service is one method of classifying retail outlets; the highest level is known as service, and the lowest level is called service. (enter one word in each blank.)
Level of service is one method of classifying retail outlets; the highest level is known as full service, and the lowest level is called self-service.
The level of provider is a qualitative measure used to relate the best of motor car traffic providers. LOS is used to analyze roadways and intersections by way of categorizing traffic waft and assigning first-class stages of site visitors primarily based on overall performance degrees like vehicle velocity, density, congestion, and so forth.
Stage of service (LOS) is a time period used to qualitatively describe the running situations of a roadway based totally on factors along with pace, journey time, maneuverability, put-off, and safety.
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a consumer is aware of the brand but does not have a preference for it over other brands. this level of brand loyalty is known as:
A consumer is aware of the brand but does not have a preference for it over other brands. this level of brand loyalty is known as brand Recognition
What is brand recognition?A consumer's ability to accurately identify a certain good or service based solely on its logo, tagline, packaging, or marketing campaign is known as brand recognition. Audio cues like jingles or theme songs connected to a brand can also cause people to recognize a product.The accuracy with which a consumer can recognize your brand based on visual cues like your logo and colors is referred to as brand recognition. For instance, even if you can't make out the words, you'll instantly know it as Dunkin Donuts if you see the pink and orange initials of the company up ahead.To learn more about brand recognition refer to:
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which policy allows for a more stable output response to a shock that arises from a change in the demand for goods and services?
Policy that allows overall demand through an easing of monetary policy that lowers interest rates.
What interest rates means?
An interest rate can be defined as the amount a lender charges a borrower and is a percentage of the principal the amount loaned.
Advantages of interest rate includes higher savings returns that can be earned in a savings account .Central banks raise or lower short-term interest rates to ensure stability and liquidity in the economy
They depend upon
supply and demand of creditan increase in the demand for moneyHence, Policy that allows overall demand through an easing of monetary policy that lowers interest rates.
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marketers use copy testing to assess the potential effectiveness of their marketing communications message. which of the following measures comprises copy testing?
the following criteria include copy testing, pre-post-viewing interest, and purchasing intent.
A corporation or organization uses the purchasing process to buy products or services in order to achieve its objectives. Although many businesses make an effort to establish standards for the purchasing process, procedures can differ significantly between firms.
The expediting, supplier quality, transportation, and logistics are often also included in the larger procurement process, which includes purchasing.
The organization's acquisition criteria and procedures are directed by purchasing managers/directors and procurement managers/directors. The majority of businesses base their purchasing systems on a three-way check. As a result, three organizational departments complete various phases of the purchase process. For the purpose of discouraging unethical behavior and enhancing the process' credibility, the three departments do not all report to the same senior manager.
Correct question
marketers use copy testing to assess the potential effectiveness of their marketing communications message. which of the following measures comprises copy testing?
Pre- and Postviewing purchasing interest
copy testing
purchasing intent.
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Which of the following is the correct definition of a product?
A. A product is anything that can be offered to a market for consumption that does not satisfy a want or need.
B. A product is a tangible good that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
C. A product is a tangible good or a service that can be offered to a
market for attention, acquisition, use, or consumption that does not satisfy a want or need.
D. A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
E. A product is a tangible good or a service that can be offered to a market for consumption that might satisfy a want or need.
The correct definition of a product is:
A product is a tangible good or a service that can be offered to a market for attention, acquisition, use, or consumption that does not satisfy a want or need.
Physical things that can be touched are referred to as tangible goods. They differ from intangible goods, which might be valuable but aren't actual objects. Although the purchase of intangible items is now readily available over the Internet, product tangible objects still play a significant role in retail. They differ from services, like spa treatments, in that the end outcome of service is not a physical good.
Anything that can be felt physically is considered a tangible good, such as printed books, CDs, DVDs, lights, food, and baseball bats. Asking if something can be product or picked up in the real world is one of the simplest methods to tell if something is substantial or not. The benefit is palpable if the answer is yes.
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. which of the following best describes a set of detailed practices for it service and asset management? a. information technology infrastructure library (itil) b. project management body of knowledge (pmbok) c. agile methodology d. iso 9000
Option a, information technology infrastructure library describes a set of detailed practices for its service and asset management.
An information technology infrastructure library is used in a business to improve the overall lifecycle of production. It includes selection, modification, delivery, and maintenance in production.
It enabled the information technology administrators to be partners with the business instead of being in the backend. The actions and expenses of the information technology departments are following the needs and changes of the business.
Information technology infrastructure library creates documentation and certifications based on the present infrastructure and the services provided by the business. The origin of the technology infrastructure library can be traced to the decade of the 1980s.
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According to an article in crain’s chicago, how much is nascar spending to stage its first street-circuit race in chicago next year as part of its 75th anniversary?.
NASCAR itself will spend roughly $50 million setting up and running the event, will fill an estimated 24,000 room-nights in area hotels, and used standard multipliers in coming up with the $113.8 million figure, the spokesman said.
What is NASCAR's purpose?
Since its founding in 1948 in Daytona Beach, Florida, NASCAR has served as North America's governing body for stock car racing. By the turn of the twenty-first century, stock car racing had become a hugely popular sport in the United States.How does a car become a NASCAR?
The top, hood, and trunk lid are the three factory-standard components that race cars must have according to the rules. The race car's specific manufacturing processes and remaining components are made for it. The car's body must adhere to precise NASCAR blueprints.Learn more about NASCAR
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If product demand is relatively elastic, what will be the effect on the total revenue if the price is increased?.
If product demand is relatively elastic, an increase in price will lead to a decrease in total revenue.
What will be the effect on the total revenue if the price is increased?If demand for a product is relatively elastic, that means that consumers are price-sensitive and will respond to changes in price by altering their quantity demanded. An increase in price will lead to a decrease in quantity demanded, and therefore a decrease in total revenue.
Elasticity is a measure of how much one variable responds to changes in another variable. In the case of economics, elasticity is often used to measure how demand for a good or service changes in response to changes in price.
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(last word) in response to the great recession, the federal government engaged in significant deficit-funded spending. while it kept the recession from getting worse, and did result in some positive economic growth, it did not fully achieve the desired result. which of the following best explains why the fiscal policy actions fell short of their objective?
Neither economic growth nor unemployment responded as well as many economists had predicted.
What should be done by the federal government in terms of fiscal policy to combat a recession?
The government may reduce tax rates or boost spending during a recession to boost demand and the economy. On the other hand, it can increase rates or reduce spending to slow down the economy in order to battle inflation.
To lower interest rates, it made open market purchases. In response, governments tried to stimulate the economy through two channels: automatic stabilizers and fiscal stimulus, which entails increased discretionary expenditure or tax reductions. Stabilizers don't depend on specific government acts; instead, they take effect as tax income and expenditure levels vary.
To know more about recession, refer:
https://brainly.com/question/18075358
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