Suppose that for a particular economy and period, investment was equal to 100, government expenditure was equal to 75, net taxes were fixed at 100, and consumption (C) was given by the consumption function C = 25 + 0.8YD where YD is disposable income and Y is GDP.
a. What is the level of equilibrium income (Y).
b. What is the value of the government expenditure multiplier? Of the tax multiplier?
c. Suppose that investment declined by 40 units to a level of 60. What will be the new level of equilibrium income? __________
4. In the question above, assume that beginning from the initial equilibrium position (investment equal to 100, government expenditure equal to 75, and net taxes fixed at 100), there was an autonomous fall in consumption and an increase in saving such that the consumption function shifted from C = 25 + 0.8YD to C = 5 + 0.8YD
a. Find the change in equilibrium income resulting from the autonomous increase in saving.
b. Calculate the level of saving before and after the shift in the consumption and, therefore, the saving function. How do you explain this result?
In: Economics
Market in competitive equilibrium, the demand is the demand and supply respectively are p = 100 - QD and p = 20 + (QS /3). The government introduces a subsidy of s = $4 per unit of the good sold and bought
In: Economics
In: Economics
In: Chemistry
This questions are for MULTIPLE CHOICE and Calculation
REV #3 September 2008
Prepare the necessary journal entry to record the purchase of $100 of supplies on account:
The steps in an accounting cycle can be best described as:
Journalize, Post, prepare Unadjusted trial balance, prepare financial statements, close
Journalize, Post, prepare Unadjusted trial balance, prepare adjusting entries, prepare adjusted trial balance, prepare financial statements, close, prepare post closing trial balance
Analyze Transactions, Journalize, Post, prepare Unadjusted trial balance, prepare adjusted trial balance, prepare financial statements, close, prepare post closing trial balance
Analyze transactions, Journalize, Post, prepare Unadjusted trial balance, prepare adjusting entries, prepare adjusted trial balance, prepare financial statements, close, prepare post closing trial balance
Prepare the necessary adjusting journal entry. The work week starts on Monday and ends on Friday. The work day is 8 hours long. There are 5 employees. Each employee earns $100 per day. The month ends on a Tuesday. What adjusting journal entry is needed?
As part of the closing process for a sole proprietorship, the income summary has a debit to close all of the related expense accounts for $45,000 and a credit to close all of the related revenue accounts of $80,000. What is needed to close the income summary account?
Debit income summary for $35,000
Debit income summary for 125,000
Credit income summary for $35,000
Credit income summary for $125,000
When preparing a worksheet, what would be the adjusted trial balance amount for the following account?
Account | Unadjusted Trial Balance | Adjustments | Adjusted Trial balance | |||
Debit | Credit | Debit | Credit | Debit | Credit | |
Prepaid Rent | $5,000 | $1,500 | ||||
$3,500 adjusted debit balance
$3,500 adjusted credit balance
$6,500 adjusted debit balance
$6,500 adjusted credit balance
On a worksheet, the unearned consulting revenue account has a $3,000 normal balance. When preparing the income statement columns on the worksheet, the unearned consulting revenue amount would be put into which column?
Debit Income Statement
Credit Income Statement
Debit Balance Sheet
Credit Balance Sheet
As you look at the bottom totals of the following worksheet, you see that it has not been completed. Does this company have a net income or a net loss and for how much?
Account | Income Statement | Balance Sheet & Statement of Owners Equity | ||
Debit | Credit | Debit | Credit | |
Totals | $56,000 | $106,000 | $450,000 | $400,000 |
Net Income/Loss | ||||
Totals | ||||
Net Income $50,000
Net Income $162,000
Net Loss $50,000
Net Loss $162,000
The correct sequence order in which to prepare financial statements is:
Income statement, Balance sheet, Statement of Owners Equity
Balance Sheet, Statement of Owners Equity, Income Statement
Statement of Owners Equity, Income Statement, Balance Sheet
Income Statement, Statement of Owners Equity, Balance Sheet
Balance Sheet, Income Statement, Statement of Owners Equity
Statement of Owners Equity, Balance Sheet, Income Statement
When recording the sale of inventory that cost $700 in a perpetual inventory system, which of the following is needed?
Debit Inventory $700
Credit Inventory $700
Debit Inventory Purchases $700
Credit Cost of Goods Sold $700
Howe Company has the following inventory transactions during the month.
Beginning Inventory | 50 units @ $10 unit cost |
05/15 Purchase | 100 units @ $12 unit cost |
05/20 Sold | 60 units |
05/22 Purchase | 50 units @ $13 unit cost |
05/30 Sold | 80 units |
What is the value of the ending inventory using First In First out for a periodic Inventory System?
$620
$770
$775
$780
In: Accounting
Harley’s current wealth is $600, but there is a 0.25 probability that he will lose $100. Harley is risk neutral. He has an opportunity to buy insurance that would restore his $100 if he lost it.
A) Harley would be willing to pay more than $25 for this insurance.
B) Harley would be willing to pay at most $25 for this insurance.
C) Harley would pay at most an amount strictly less than $25 for this insurance.
D) Since Harley is risk neutral, he wouldn’t be willing to pay anything for this insurance.
E) Since Harley’s utility function is not specified, we can’t tell how much he would be willing to pay for this insurance.
In: Economics
A researcher selects a sample of 100 participants from a population with a mean of 38 and a standard deviation of 20. About 68% of the sample means in this sampling distribution should be between ______ and ______. Show your work
In: Statistics and Probability
A spring with a spring constant ? k of 100 pounds per foot is loaded with 1-pound weight and brought to equilibrium. It is then stretched an additional 1 inch and released. Find the equation of motion, the amplitude, and the period. Neglect friction. Then find y(t)
In: Advanced Math
) Suppose that the firm’s total cost function is of the form C(y) = 100 + 10y + y^2 . Where does the average cost function reach a minimum? Consider the following demand curves:
i. D(P) = 130 − 4P
ii. D(P) = 120 − 2P
iii. D(P) = 120 − 4P
For which of these examples is the firm a natural monopoly? [There may be multiple tests to answer this question. Clearly state which one you are using. That is give a specific mathematical criterion for this and the intuition for using that choice.
Can you please explain thoroughly, thank you.
In: Economics
IQ test scores are normally distributed with a mean of 100 and a standard deviation of 15. An individual's IQ score is found to be 123.
A.What percentage of individuals will score above 123?
B.What percentage of individuals will score below 123?
c. What percentage of individuals will score between 123 and 100?
d. This individual was trying to be in the 80th percentile; did they achieve this? how can you tell?
e. what can we say about someone with a z score of -1.61? How many will score above? below? what is their IQ score?
f. what IQ score(s) will encompass the middle 39%?
In: Statistics and Probability