1. This question is based on our lectures on the IS-LM framework. Consider the economy given by the following equations: C = 0:8(1 t)Y t = 0:25 I = 900 50r G = 800 L(r; Y ) = 0:25Y 62:5r M P = 500 (a) What is general deÖnition of the IS curve? Derive the IS curve from the above equations.
(b) What is general deÖnition of the LM curve? Derive the LM curve from the above equations.
(c) Describe in words the conditions that satisfy the deÖnition of an equilibrium. Find the equilibrium level of the endogenous variables.
(d) Determine the level of spending multiplier with and without money market. Explain the di§erence (if any).
(e) Explain in words what a§ects/determines the slope of IS and LM curves.
(f) Explain how the slope of IS curve determines the e§ectiveness of monetary policy and that of LM curve determines the e§ectiveness of Öscal policy?
(g) Under what circumstances might the LM curve be horizontal? Under such case what would be the spending multiplier? Explain the implications of increasing the government spending. (10 mar
In: Economics
Use Excel to develop a regression model for the Consumer Food Database (using the “Excel Databases.xls”
file) to predict Annual Food Spending by Annual Household Income. Assume a 5% level of significance.
(file here: https://drive.google.com/file/d/13uDUXwoSRZHEUtjMUedu2yjR_4lrLepC/view?usp=sharing )
Must complete all the parts to this problem:
In: Statistics and Probability
V+Consider a closed economy with fixed prices and wages. Suppose
the consumption
function is given by
? = 50 + 0.5?
?
where C is consumption and ?
?
is disposable income. The investment function is
given by
? = 30 − 5?
where I is investment and r is the interest rate. The demand for
money is given by
?/? = 200 + 2? − ℎ?
where M is the amount of money demanded, P is the price level, and
h is a parameter
measuring the sensitivity of money demand to the interest rate.
Assume that the
price level is fixed at P = 1.
(a) Assume that h=20. If government spending is G=20, taxes are
T=10, and
the money supply is M=300, find the equilibrium levels of output
and the
interest rate.
(b) Now assume that government spending decreases to 10. What is
the
multiplier? Is the effect of government spending on output
increased or
decreased when h is larger? Explain your answer intuitively.
(c) Now suppose taxes decrease to 0. What is the multiplier? Will
the
multiplier be different than your answer in part (b)? Explain
intuitively.
i am having trouble with b and c. could you do them in detail mainly the multipliers
In: Economics
X Company manufactures dartboards. Its standard cost information
follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (cork board) | 3.50 | sq. ft. | $ | 2.40 | per sq. ft. | $ | 8.40 | |
| Direct labor | 1 | hrs. | $ | 11.00 | per hr. | 11.00 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1 | hrs. | $ | 0.65 | per hr. | 0.65 | ||
| Fixed manufacturing overhead ($58,500 ÷ 130,000 units) | 0.45 | |||||||
X company has the following actual results for the month of
September:
| Number of units produced and sold | 110,000 | |
| Number of square feet of corkboard used | 400,000 | |
| Cost of corkboard used | $ | 1,000,000 |
| Number of labor hours worked | 125,000 | |
| Direct labor cost | $ | 1,262,500 |
| Variable overhead cost | $ | 72,000 |
| Fixed overhead cost | $ | 54,000 |
Required:
1. Calculate the direct materials price, quantity,
and total spending variances for the company.
2. Calculate the direct labor rate, efficiency,
and total spending variances for the company.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for the company.
In: Accounting
Barley Hopp, Inc., manufactures custom-ordered commemorative
beer steins. Its standard cost information follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost | ||||||
| Direct materials (clay) | 1.60 | lbs. | $ | 1.70 | per lb. | $ | 2.72 | |
| Direct labor | 1.60 | hrs. | $ | 14.00 | per hr. | 22.40 | ||
| Variable manufacturing overhead (based on direct labor hours) | 1.60 | hrs. | $ | 1.20 | per hr. | 1.92 | ||
| Fixed manufacturing overhead ($312,500.00 ÷ 125,000.00 units) | 2.50 | |||||||
Barley Hopp had the following actual results last year:
| Number of units produced and sold | 130,000 | |
| Number of pounds of clay used | 228,200 | |
| Cost of clay | $ | 365,120 |
| Number of labor hours worked | 175,000 | |
| Direct labor cost | $ | 2,975,000 |
| Variable overhead cost | $ | 250,000 |
| Fixed overhead cost | $ | 330,000 |
Required:
1. Calculate the direct materials price, quantity, and
total spending variances for Barley Hopp.
2. Calculate the direct labor rate, efficiency,
and total spending variances for Barley
Hopp.
3. Calculate the variable overhead rate,
efficiency, and total spending variances for Barley
Hopp.
In: Accounting
4. Assuming the government of country Balistan has a balanced budget requirement and collects $100 million more in taxes than expected in 2016. As a result, the government would have to
increase taxes by $100 million.
increase spending by $100 million.
reduce spending by $100 million.
5.
Assuming that income tax is the only source of revenue for the government, with tax revenue of $50 billion and government spending totaling $70 billion, which of the following is true of the government’s budget?
The government has a budget surplus of $20 billion.
The government has a balanced budget of $70 billion.
The government has a budget deficit of $20 billion.
10.
Banks create money through which of the following processes?
printing money
lending money
writing checks on bank deposits
11.
Corporate stock ________.
represents debt in a firm.
is considered to be a loan from a bank.
represents ownership in a firm.
14.
If a person owns stock in a corporation, what do they own?
Corporate stock represents ownership in a firm.
Corporate stock is considered to be a bank bond.
Corporate stock represents firm debt.
16.
Debit cards are a form of
debt.
money.
credit.
In: Economics
Members of the board of directors of Security First Security First have received the following operating income data for the year ended: May 31, 2018:
Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $ 80,000 and decrease fixed selling and administrative expenses by $ 10,000.
Read the requirements:
1. Prepare a differential analysis to show whether Safety Point Safety Point should drop the industrial systems product line.
2. Prepare contribution margin income statements to show Safety Point's Safety Point's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1.
3. What have you learned from the comparison in Requirement 2?
|
Product Line |
|||
|
Industrial |
Household |
||
|
Systems |
Total |
||
|
Net Sales Revenue |
$340,000 |
$370,000 |
$710,000 |
|
Cost of Goods Sold: |
|||
|
Variable |
36,000 |
46,000 |
82,000 |
|
Fixed |
250,000 |
69,000 |
319,000 |
|
Total Cost of Goods Sold |
286,000 |
115,000 |
401,000 |
|
Gross Profit |
54,000 |
255,000 |
309,000 |
|
Selling and Administrative Expenses: |
|||
|
Variable |
65,000 |
72,000 |
137,000 |
|
Fixed |
45,000 |
22,000 |
67,000 |
|
Total Selling and Administrative Expenses |
110,000 |
94,000 |
204,000 |
|
Operating Income (Loss) |
($56,000) |
$161,000 |
$105,000 |
.
Requirement 1. Prepare a differential analysis to show whether
Security First Security First
should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.)
|
Expected decrease in revenues |
||||
|
Expected decrease in total variable costs |
||||
|
Expected decrease in fixed costs |
||||
|
Expected decrease in total costs |
||||
|
Expected decrease |
in operating income |
|||
Requirement 2. Prepare contribution margin income statements to show First's Security First's Security
total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.)
|
Security First |
|||
|
Contribution Margin Income Statement |
|||
|
For the Year Ended May 31, 2018 |
|||
|
Totals With |
Totals Without |
Change if Industrial |
|
|
Industrial Systems |
Industrial Systems |
Systems Is Dropped |
|
|
Net Sales Revenue |
|||
|
Variable Costs: |
|||
|
Manufacturing |
|||
|
Selling and Administrative |
|||
|
Total Variable Costs |
|||
|
Contribution Margin |
|||
|
Fixed Costs: |
|||
|
Manufacturing |
|||
|
Selling and Administrative |
|||
|
Total Fixed Costs |
|||
|
Operating Income (Loss) |
|||
In: Accounting
Site visits to your seller's website on Amazon fluctuate over the course of the year, but the general trend is up. Growth in Q1 relative to Q4 is down by −12.0−12.0% quarter-over-quarter, Q2 is up 5.05.0% relative to Q1, Q3 up by 7.07.0% over Q2, and Q4 is up by 21.021.0% over Q3. During all of Q2 2019 your store received 24972497 visits.
How many visits will there be in all of Q2 of 2020?
How many visits in total in the 12 months leading up to the end of June 2020?
In: Finance
You have one million dollars in your investment account and choose to keep your money allocated in the following proportion and rebalance each quarter: i. 60% in stocks via ETF SPY; ii. 40% in bonds via ETF AGG. Over the past quarter, AGG went up by 3% and SPY went up by 1%. a. What is your account balance before rebalancing? b. How do you rebalance your account? What to buy and what to sell? How many dollars to buy and how many dollars to sell?
In: Finance
There is an airfoil with a 3ft chord length for a small remote controlled aircraft. The lift coefficient is C = 0.59 and the pitching moment coefficient at a quarter chord length is Cm,c/4 = -0.032 for a landing spped of 45 ft/s at sea-level std conditions
a) Calculate the lift per unit span (in lbf/ft)
b) Calculate the moment about the quarter chord position per unit span
c) Calculate the moment about the leading edge per unit span
d) If the weight of this small aircraft is 76 lb, what is the wing span required
In: Mechanical Engineering