1. Explain how mandatory spending comes about relative to discretionary spending. Then assign the following programs to each: interest payments on the debt, national defense, Social Security, food stamps. (One page in length)

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1. Explain how mandatory spending comes about relative to discretionary spending. Then assign the following programs to each: interest payments on the debt, national defense, Social Security, food stamps. (One page in length)

Total has discovered a potential 1 billion barrels of “wet” gas off the coast of South Africa. The gas could be used as petrol or perhaps even converted into electricity, according to one expert. The Brulpadda gas find should mean more tax revenue and a stronger rand. How Will It Affect South Africans Firstly, government will earn more tax. Total and its partners will pay the regular 28% corporate tax on all taxable income from Brulpadda. According to the most optimistic estimates, the Brulpadda find could yield $1 trillion (R14.4 trillion) for Total and its partners, which would mean a massive tax windfall for South Africa. Certain Businesses and Skills Will Be in Demand The Brulpadda find could have a massive boost to all kinds of businesses in South Africa. Companies providing helicopters, marine services, catering supplies and transport to get supplies to the site would be required.

4.1 Assuming that government budget is at zero balance discuss the implication of the gas find in terms of government’s fiscal policy for the following economic factors:

4.1.1 Collection of revenue through taxation on personal income (6)

4.1.2 Government spending on the provision of goods and services (7)

4.2 Explain, with the aid of a diagram, the economic impact on cost-push inflation and aggregate output. (12)

4.3 Discuss the main type of unemployment that would be reduced

Draw and carefully describe a graph that utilizes the Aggregate Demand/Aggregate Supply model that would illustrate the state of the aggregate economy in the United States as of February 1, 2020. Make sure that you explain your graph in your own words. You should draw your own AD/AS graph which you can then embed into your post. Your graph needs to be clearly labeled and explained in some detail. Make sure that your graph includes an aggregate demand (AD) curve, a short run aggregate supply (SRAS) curve, and a long run aggregate supply curve (LRAS, Potential GDP) curve. You should clearly label both axes of the graph

The Coronavirus pandemic has resulted in shocks to both Short Run Aggregate Supply(SRAS) and Aggregate Demand. Workers that can’t go to work can’t supply goods and services. On your graph clearly illustrate the effects of the shocks to the economy through shifts in both the aggregate demand (AD) and the short run aggregate supply curve (SRAS)

How would you expect the shifts to affect real GDP and the price level? Explain how and why the spread of the Coronavirus is likely to affect consumer and business investment spending and how it will affect aggregate demand? Which sectors of the economy and occupations will be most affected? Be specific.

4. The DM budget: The Jam J Corporation's production budget calls for the following number of units to be produced each quarter for next year:

Budgeted production

Each unit of product requires three (3) pounds of direct material. The company's policy is to have ending raw materials inventory equal to 10% of the following quarter's direct material production needs.

Calculate the budgeted direct materials purchases for the second quarter.

The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 25,000 28,000 26,000 21,000 Each unit requires 1.4 direct labour-hours, and direct labour-hour workers are paid $22 per hour. In addition, the variable manufacturing overhead rate is $1.10 per direct labour-hour. The fixed manufacturing overhead is $167,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $51,000 per quarter. Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2.Prepare the company's manufacturing overhead budget.

The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

    1st Quarter   2nd Quarter   3rd Quarter   4th Quarter
Units to be produced   23,000   29,000   26,000   23,000

Each unit requires 1.2 direct labour-hours, and direct labour-hour workers are paid $22 per hour.

In addition, the variable manufacturing overhead rate is $1.40 per direct labour-hour. The fixed manufacturing overhead is $170,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $54,000 per quarter.

Required:

1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the company's manufacturing overhead budget.

The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 1.3 direct labour-hours, and direct labour-hour workers are paid $20 per hour.

In addition, the variable manufacturing overhead rate is $1.50 per direct labour-hour. The fixed manufacturing overhead is $163,500 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $47,500 per quarter.

Required:

1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the company's manufacturing overhead budget.

KPNG Consulting has five projects to consider. Each will require time in the next four quarters according to the table below

Revenue from each project is also shown. Develop a model whose solution would maximize revenue, meet the time budget of: 28 in the 1st quarter, 20 in the 2nd quarter, 18 in the 3rd quarter and 16 in the 4th quarter; at least three projects; and not do both projects C and D. If project B is chosen, project D must be chosen.