1. Suppose that the model of the economy is given by

Y = C + I + G + X

C = a + b Yd

Yd = (1 – t)Y

X = g – mY

a. Derive the equilibrium GDP (Y) and the expenditure multiplier (Me ) expressed in general notations.

b. Suppose I = $900 billion, G = $1,200 billion, a = 220, b = 0.9, t = 0.3, g = 500, and m = 0.1. Solve for the equilibrium GDP (Y) and the expenditure multiplier (Me ) using your answers to part a.

c. Is the expenditure multiplier (Me ) with variable import spending (refer the numerical solution of Me from part b) larger or smaller than the expenditure multiplier (Me ) with fixed import spending? In addition to an algebra comparison, provide an intuition with your answer. Hint: The expenditure multiplier (Me ) with fixed import spending (i.e. constant X)) is 1 1−?(1−?) , in the problem, b = 0.9, t = 0.3.

d. Solve for private saving (Sp), government saving (Sg), and the rest of the world saving (Sr) when investment spending (I) is $900 billion.

2. Consider following simple closed economy (X = 0) and all taxes are fixed (a constant T):

Y = C + I + G

C = a + b Yd

Yd = Y – T

a. Derive the equilibrium GDP (Y), the expenditure multiplier (Me ), and the fixed tax multiplier (MT ) expressed in general notation.

b. Suppose government changes government spending G and fixed taxes T by the same amount (G = T). Derive the balanced budget multiplier, Y/G with G = T, using solutions of Me and MT from part a. [Hint] Y = meG + mTT

c. Illustrate the effect on income Y of a balanced budget increase in government spending and taxes (i.e., G=T>0) on the income expenditure (45 degree) diagram. Fully label your diagram.

George Large (SSN 000-11-111) and his wife Marge Large (SSN 000-22-222) live at 2000 Lakeview Drive,Cleveland, OH 49001 and want you to prepare their 2016 income tax return based on the information below:

George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his employer business expense. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance worth $7,200 per year. George drove his car 24,000 miles during the year, and he placed the car in service on June 1, 2014. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. Assume his business miles were driven evenly during the year. George is a collegel basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip: Airfare $200 Lodgoing $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home. The total square footage of the Larges' home, including the basement is 3,000 square feet. The portion of the basement used in Marge's business is 750 square feet. The business cos is 811490. She had the following income and expenses:

Income from rubber toy bost repairs: $15,000 , Cost of supplies: $5,000, Contract labor: $3,500 and Telephone (business) $500.

The Largues use the simplified method to figure their deduction for Marge's busniess use of their home. Larges incurred the following total other expenses: Real estate taxes: 2,500 Mortgage interest: 4,500 Cash chritable contributions: 3,500.

Prepare Form 1040, Schedules A,C and SE for form 1040, Form 2106 for the 2016 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges)

George Large (SSN 000-11-1111) and his wife Marge (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OG 49001 and want you to prepare their 2015 income tax return based on the following information below:

George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000 to cover his business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, non of the reimbursement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insurance of $7,200 per year, George drive his car a total of 24,000 miles during the year, and he placed the car in service on June 1, 2010. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage reimbursement rate method. Assume his business miles were driven evenly during the year. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He takes a customer to every game, and they discuss some business before, during, and after the games. George also takes his clients to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five day business trip to the Toyboat headquarters in Musty, Ohio. He was so well prepared that he finished his business in three days, so he spent the other two days sightseeing. He had the following expenses during each of the five days of his trip:

Airfare: $200

Lodging: $85/day

Meals: $50/day

Taxicabs: $20/day

Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house's square footage. The business code is 811490. She had the following income and expenses:

Income from rubber toy boat repairs: $15,000

Cost of Supplies: 5,000

Contract Labor: 3,500

Telephone (business) 500

The Large's home cost a total of $150,000, of which the cost of the land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39-year recovery period. The Larges incurred the following total other expenses:

Utility bills for the house: $2,000

Real estate taxes 2,500

Mortgage interest 4,500

Cash charitable contributions 3,500

Prepare Form 1040, Schedules A, C, and SE for Form 1040, and Forms 2106 and 8829 for the 2015 year. (Assume no depreciation for this problem and that no estimated taxes were paid by the Larges).

George Large (SSN 000-11-1111) and his wife Marge Large (SNN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2014 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He recieved a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbrsement from Toyboat of $5,000 to cover his employee business expenses. George must make an adequate accounting to his employer and return any excess reimbursement, none of the reimbirsement was related to the meals and entertainment. Additionally, Toyboat provides George with medical insruance worth $7,200 per year. George drove his car a total of 24,000 miles during the yeear, and he placed the car in service on June 1, 2012. His log indicates that 18,000 miles were for sales calls to customers at the customers' offices and the remainder was personal mileage. George uses the standard mileage rate method. Assume his business miles were driven evenly during the year. George is a college basketball fan. He purchased two season tickets for a total of $4,000. He tales a costomer to every game, and they discuss some business before, during, adn after the games. George also takes to business lunches. His log indicates that he spent $1,500 on these business meals. George also took a five-day trip to the Toyboat headquarters in Musty, Ohio. He was so well-prepared that he finished his business in three days, so he sent the other two days sighseeing. He had the following expenses during each of the fve days of his trip: Airfare $200 Lodging $85/day Meals $50/day Taxicabs $20/day Marge Large is self-employed. She repairs rubber toy boats in the basement of their home, which is 25% of the house's square footage. The business code is 811490. She had the following income and expenses: Income from rubber toyboat repais $15,000 Cost of supplies $5,000 Contract labor $3,500 Long distance phone calls (business) $500 The Large's home cost a total of $150,000, of which the cost of the land was $20,000. The FMV of the house is $225,000. The house is depreciable over a 39-year recovery period. The Larges incurred the following total other expenses: Utility Bill of the House $2,000 Real State Taxes $2,500 Mortgate Interest $4,500 Cash charitable contributions $3,500 (Assume no depreciation for this problem and that no estimates taxes were paid by the Larges) Compute income tax liability.

Soap Makers International

Several years ago, Ingrid Krause wanted some international expertise and applied for a transfer to her company’s soap division, which is located south of Warsaw, Poland. The soap division manufactures hand soap for use in a large number of settings, from hospitals to luxury hotels. Ingrid was awarded the transfer to the soap division and was assigned to the accounting department. She is responsible for overseeing the costing and probability analysis of the various soaps and soap-making processes. During her tenure in the soap division, there were numerous changes in the number of soaps manufactured and the processes to make the different soaps. Consequently, Ingrid’s position required her to consider changes in the accounting processes to reflect the changes in the soap division’s business.

For several decades, the company’s soap-making process required a large labour force that manufactured and packaged the soap mainly by hand. Local economic changes meant that the labour force that the factory required was not as available as it had been in the past. As a result, the division was experiencing slower processing time, and more snap being rejected during inspections because of quality concerns. To address the issues related to the lack of labour availability, the division’s management decided three years ago that automation was the way to go. Consequently, over the last three years, the soap making processes have changed with the implementation of automation.

The automation of the soap making processes have allowed for a much larger variety of soap and packing, a reduced direct labour force and direct labour costs, and a higher level of traceability of costs to the various soaps because of technological improvements. Soaps made for industrial applications require different ingredients, less time in processing, less time in finishing, and less time in and cheaper packaging than do soaps for the hotel industry. The costs of materials and packaging are directly traceable to the various types of soaps through new software that uses bar codes and counters to trace material costs to the various soaps directly.

Ingrid feels that the current costing system should be revisited. The cost driver for allocation of the overhead costs (such as supervisory salaries and plant utilities) have always been direct labour hours cost. However, given the decline in the use of labour due to automation, Ingrid is questioning its suitability as a basis of allocation. Ingrid would like to explore activity based costing to allocate overhead costs.

Ingrid has gathered cost data for two representative soaps: one sold to hospitals and one sold to hotels. Further, Ingrid has gathered data from the automated system on the amount of time each type of soap spends in the three manufacturing processes: processing, finishing, and packaging. The soap is produced in large batches, consequently, the data are adjusted to reflect the average cost per 100g of soap. The data for type of soap for one month’s production are in Exhibit 1.

REQUIRED

1. Calculate the costs (of direct material, direct labour, and overhead) for each of the two representative types of soap using direct labour as the basis for the allocation of overhead.

EXHIBIT 1 – COSTS FOR ONE MONTH’S PRODUCTION OF SOAP

Cost Components	Total	Costs Per 100 g of soap
		Industrial Soap (Hospital)	Luxury Soap (Hotel)
Direct Materials	$4.000,000	$0.40	$0.80
Packaging	$2,000,000	$0.10	$0.60
Direct Labour	$750,000	$0.14	$0.15
Manufacturing	$5,000,000
Processing	$2,500,000
Finishing	$1,500,000
Packaging	$1,000,000

EXHIBIT 2 – TIME REQUIRED FOR ONE MONTH’S PRODUCTION OF SOAP

Time Components	Total	Time per 100 g of soap
		Industrial Soap (Hospital)	Luxury Soap (Hotel)
Processing	750,000 seconds	0.2 second	0.4 second
Finishing	300,000 seconds	0.03 second	0.4 second
Packaging	100,000 seconds	0.006 second	0.5 second

Java Programming Project 6: File I/O

Purpose: To practice reading from as well as writing to text files with the help of Scanner class methods, and PrintStream class methods. You will also learn to implement some simple Exception Handling.

Carefully examine and follow ALL the program specifications.

Take a look at the PPT slides for Chapter 7 File I/O for examples that will help with this program.

Hotel Expense Recording Keeping:

A hotel bookkeeper enters client hotel expenses in a text file. Each line contains the following, separated by semicolons: client name, service sold (i.e., Dinner, Conference, Lodging, etc.), the sales amount, and the date.

1. Your program should first query the user for the name of the input file and read it in. Display an error if the input file is not found (does not exist).
2. Then the program should read the file (line by line), keep a running tally of the total amount for each kind of service,
3. Finally display the total amount for each service category. In addition to displaying totals on the screen, the totals should also be written to an output file.
4. Additionally your program should include some exception handling. An Exception that should be checked (and handled) would be a FileNotFoundException.

Attached (and below) is an example input file that your program will be tested with, so you will need to make sure that you program will run correctly using this file. Since this may be your first experience reading from an input file, you will likely find it easiest if you store the input file in the same folder with your Java program file so that they can easily communicate with one another. The easiest way to store this file is as a plain text file in Notepad (do not use MS word or any other sophisticated word processor or you will be processing embedded text commands, which is not at all recommended). Here is what the input file looks like:

Jason Inouye;Conference;250.00;11/10/2016

Jason Inouye;Lodging;78.95;11/10/2016

Mary Ryan;Dinner;16.95;11/10/2016

Mark Twain;Dinner;25.50;11/10/2016

Mark Twain;Spa;50.00;11/10/2016

Steven Hawking;Conference;250.00;11/10/2016

Steven Hawking;Room Service;45.00;11/11/2016

Steven Hawking;Lodging;78.95;11/11/2016

Ayrton Senna;Room Service;23.20;11/10/2016

Ayton Senna;Dinner;22.50;11/10/2016

Ayton Senna;Lodging;78.95;11/10/2016

One feature of the input file, is that it uses a semicolon (;) to delimit the tokens on each line of input, rather than whitespace. You will need to use a delimiter statement after you construct your line scanner object.

To see how to construct a line scanner object, go to Chapter 7 PowerPoint slide in the Week 13 folder. So for example, if you create an object called lineScan of type Scanner to process tokens on a given line of input, then you could call the useDelimiter method on your lineScan object, as follows:

lineScan.useDelimiter(";");

This will allow you to tokenize each input line based, not on white space delimiters, but using the semicolon as a delimiter instead.

This is what should be in your Output file after you run your program (this file will most likely be located in the same folder as your Java program).

Dinner expenses : 64.95
Lodging expenses : 236.85
Conference expenses : 500.00
Room Service expenses : 68.20
Spa expenses : 50.00

Submission Requirements:

1. Please be sure to use appropriate prologue comments at the top of your program, Javadoc formatted comments for your methods, as well as inline comments within the body of your code (as needed).

Scientists use later range-finding to measure the distance to the moon with great accuracy.  A brief lazer pulse is fired at the moon, then the time interval is measured until the "echo" is seen by a telescope.  A laser beam spreads out as it travels because it diffracts through a circular exit as it leaves the laser.  In order for the reflected light to be bright enough to detect, the laser spot on the mon must be no more than 1.0 km in diameter. Staying within this diameter is accomplished by using a special large diameter laser.  If λ=532 nm, what is the minimum diameter of the circular opening from which the laser beam emerges?  The earth-moon distance is 384,000 km.

I have D lines at 589.0 nm and 589.6 nm. A diffraction grating with 531.5 lines per mm is used to observe the discrete spectrum of sodium. The angular separation between the D lines is 0.03 degrees. How far away would an observing screen need to be placed for the D lines to be separated by 1.0 mm? The answer I came up with is 3.2 mm but that does not seem correct. When the sodium vapor is placed under high pressure, additional spectral lines can be seen, most notably the 498.3 mm line and the 515 nm line. Using the same grating and distance above, what would be the vertical position of these lines on the screen?