Answer:
decrease
increase
structural unemployment
Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Establishing government-run employment agencies to connect unemployed workers to job vacancies
Explanation:
If the world price of steel falls, the profits that can be earned from producing steel would fall. This would make steel-producing firms cutback on production. If they do this, they would lead less labour, so the demand for labour would fall.
The decrease in the price of steel would make purchasing steel by automobile companies cheaper. This would lead to a rise in production and as a result an increase in the demand for labour.
Structural unemployment occurs when there is a mismatch between the skills of labour and the jobs available. Measures taken to increase information on available jobs would reduce this type of unemployment
At the end of the current year, Newsmax Inc. has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a:
Question Completion with answer options:
a- Current deferred tax asset
b- Non-current deferred tax asset
c- Current deferred tax liability
d- Non-current deferred tax liability
Answer:
Newsmax Inc.
In the absence of other temporary differences, in the balance sheet one would also expect to find a:
a- Current deferred tax asset
Explanation:
When Newsmax Inc. received the subscriptions of $400,000 in advance, a deferred tax asset will arise on its balance sheet. This deferred tax asset results from the overpayment or advance payment of taxes on the $400,000 taxed because cash has been received, although, the associated costs have not been recorded. Deferred tax asset is the opposite of a deferred tax liability as the latter represents income taxes owed to the IRS, which will be settled in the coming period(s).
ust before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it? Explain. (Assume the new order will consume the remainder of the machine's useful life.) (Select the best choice below.) A. Yes, the cost of taking the order is the lost after-tax cash flow of $163,383 from selling the machine. B. Yes, the cost of taking the order is the extra depreciation on the machine. C. No, Jones already owns the machine, so there is no cost to using it for the order. D. Yes, the cost of taking the order is the lost $85,824 in book value.
Answer:
A. Yes, the cost of taking the order is the lost after-tax cash flow of $163,383 from selling the machine.
Explanation:
This question is about opportunity costs. Opportunity costs are benefits lost or extra costs associate to choosing one activity or investment over another alternative.
If Jones decides to accept the special order, he will not be able to sell the machine, so he will lose the $163,383 that he could have earned by selling it (that is the opportunity cost of accepting the special order).
In consumer theory, utility is
A. the want-satisfying power of a good or service.
B. the worth of a good as a team member in combination with other goods.
C. the usefulness of a good or service in performing several different functions.
D. the relation a good or service has to gas, electric and water services.
Answer:
A. the want-satisfying power of a good or service.
Explanation:
Utility meaning the want that satisfies the consumer after consuming the product or service. It directly impacts the demand of the product and the price of the good and service that are offered by the company to the consumer
Therefore according to the given option, the options A is correct and the same is to be considered
Cluck Kent Co. has a periodic inventory system. The company purchased 250 units of inventory at $14.00 per unit and 400 units at $15.00 per unit. What is the weighted average unit cost for these purchases of inventory?
a. $14.00
b. $15.00
c. $14.50
d. $14.62
Which scenario holds true when a tariff is applied to an imported item? A. both domestic and foreign consumers pay the same price B. domestic consumers of the imported item pay a higher price C. foreign consumers of the imported item pay a higher price D domestic consumers of the imported itern pay a lower price
Answer:
i would say b, the domestic pay more.
Preferred stock that has the right to prior periods' unpaid dividends even if they were not declared is called:
Answer:
cumulative preferred stocks
Explanation:
There are several ways in which you can classify preferred stocks, and one of the most important ones is cumulative or non-cumulative.
Cumulative preferred stocks are entitled to past dividends if by some reason they weren't paid by the corporation. E.g. last year no dividends were distributed, but this year preferred stockholders will receive two payments. Non-cumulative preferred stocks are not entitled to past dividends if they were not paid in their specific period. E.g if last year no dividends were declared, then they are lost and will not be paid in the future.For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances
Answer:
The change in the real money balance is 12%
Explanation:
As per gievn data
GDP growth rate = 8%
Inflation = 4%
The real money change is as follow
Equation
Delta M + Delta V = Delta P + Delta Y
Where
Delta M = Real money change = ?
Delta V = Change in velocity = 0
Delta P = Inflation rate = 4%
Delta Y = GDP growth rate = 8%
Placing values in the above equation
Delta M + 0 = 4% + 8%
Delta M = 12%
Hence the money balance will increase by 12%.
"Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 3%, and the future value of dividends expected to be paid over the next year is $35. The current index level is 2,000. Assume that you can short sell the S&P index. a. Suppose the expected rate of return on the market is 8%. What is the expected level of the index in one year? b. What is the theoretical no-arbitrage price for a 1-year futures contract on the S&P 500 stock index? c. Suppose the actual futures price is 2,012. Is there an arbitrage opportunity here? If so, how would you exploit it?"
Answer:
a. $2125
b. $2025
c. there is an arbitrage opportunity.
Explanation:
a. St = So x (1+ rm)-D
So = current index price = 2000
rm = return on market = 8%
D = dividends = $35
inserting into the formula:
2000x(1+0.08)-35
= $2125
b.
So x (1+rf)-D
rf = 3%
2000 x (1+0.03)-35
= $2025
c. yes there is an arbitrage opportunity. the investor should go into contract with an exercise price of 2125dollars then short sell asset in future and after this, buy back after at future market price. since actual future price is 2012 and price expected is 2125.
Two machines are currently in use in a process at the Dennis Kira Mfg. Co. The standards for this process are and . Machine One is currently producing with mean." and standard deviation .000". Machine Two is currently producing with mean ." and standard deviation .000". Which machine has the higher capability index? Machine One has an index of nothing (round your response to two decimal places).
Complete question :
Two machines are currently in use in a process at the Dennis Kira Mfg. Co. The standards for this process are LSL = 430" and USL = .435". Machine One is currently producing with mean = 432" and standard deviation .0005". Machine Two is currently producing with mean .4315" and standard deviation .0004". Which machine has the higher capability index? Machine One has an index of ?(round your response to two decimal places)
Answer:
Machine 1 has higher capability index
Machine 1 has capability index of 1.33
Explanation:
Given the following :
Lower specification limit (LSL) = 0.430
Upper Specification Limit (USL) = 0.435
MACHINE 1:
mean = 0.432
Standard deviation(σ) = 0.0005
MACHINE 2:
mean = 0.4315
Standard deviation = 0.0004
The Process Capability Index (Cpk) :
Min[(USL - mean) /3σ, (mean - LSL) / 3σ]
FOR MACHINE 1:
MIN[(0.435 - 0.432) /3(0.0005), (0.432 - 0.430) / 3(0.0005)]
MIN[ 2. 9167, 1.3333]
Hence, Cpk of Machine 1 = 1.33
FOR MACHINE 2:
MIN[(0.435 - 0.4315) /3(0.0004), (0.4315 - 0.430) / 3(0.0004)]
MIN[ 2, 1.25]
Hence, Cpk of Machine 2 = 1.25
Machine 1 has higher capability index
Machine 1 has capability index of 1.33
The June 1 work in process inventory consisted of 5,300 units with $20,680 in materials cost and $17,320 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,800 units were started into production. The June 30 work in process inventory consisted of 8,600 units that were 100% complete with respect to materials and 50% complete with respect to conversion. 11. What is the cost of ending work in process inventory for conversion
Answer:
$22,145
Explanation:
First, calculate the equivalent units of production with respect to conversion costs.
Conversion Costs
Ending Work In Process (8,600 × 50%) = 4,300
Completed and Transferred (34,500 × 100%) = 34,500
Equivalent units of production with respect to conversion costs = 38,800
Then Calculate the total Conversion Costs as follows :
Conversion cost in beginning work in process $ 17,320
Add conversion costs added during the year :
Direct Labor $ 82,500
Overhead $100,000
Total Conversion Cost $199,820
Finally, calculate the cost per equivalent unit for conversion and cost of ending work in process inventory for conversion
Cost per equivalent unit = Total Cost ÷ Total Equivalent Units
Therefore,
Cost per equivalent unit = $199,820 ÷ 38,800
= $5.15
Therefore,
Cost of ending work in process inventory for conversion = 4,300 × $5.15
= $22,145
Crane Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $140,000, $240,000, and $54,000, respectively. The cost driver for each activity and the estimated annual usage are number of setups 2,000, machine hours 24,000, and number of inspections 1,200. Compute the overhead rate for each activity. Machine setups $ per setup Machining $ per machine hour Inspections $ per inspection
Answer:
1. $70 per set up
2. $10 per machine hour
3. $45 per inspection
Explanation:
With regards to the above,
Compute the overhead rate for
1. Machine set ups
= Estimated annual overhead cost / Estimated annual Number of setups
Estimated annual overhead costs = $140,000
Estimated annual Number of setups = 2,000
= $140,000 / 2,000
= $70 per set up
2. Machining
= Estimated annual overhead costs / Estimated annual Machine hours
Estimated annual overhead costs = $240,000
Estimated annual Machine hours = 24,000
= $240,000 / 24,000
= $10 per machine hours
3. Inspection
= Estimated annual overhead costs / Estimated annual number of inspections
Estimated annual overhead costs = $54,000
Estimated annual number of inspections = 1,200
= $54,000 / 1,200
= $45 per inspection
What are the annual sales for a firm with $400,000 in debt, a total debt ratio of 0.4, and an asset turnover of 3
Answer:
$3,000,000
Explanation:
The first step is to calculate the assets
= debt / Total debt ratio
= 400,000/0.4
= 1,000,000
Therefore the annual sales for the firm can be calculated as follows
= 3 × 1,000,000
= $3,000,000
The expected return on the market portfolio is 12%, and the relevant risk-free rate is 4.2%. What is the equity premium?
Answer:
7.8%
Explanation:
The expected return on the market portfolio is 12 percent
The risk free rate is 4.2 percent
Therefore the equity premium can be calculated as follow
= expected return - risk free rate
= 12% - 4.2%
= 7.8%
Hence the equity premium is 7.8%
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
April 30 May 31
Inventories
Raw materials $ 42,000 $ 44,000
Work in process 9,400 18,400
Finished goods 59,000 33,200
Activities and information for May
Raw materials purchases (paid with cash) 191,000
Factory payroll (paid with cash) 200,000
Factory overhead
Indirect materials 17,000
Indirect labor 46,000
Other overhead costs 91,000
Sales (received in cash) 1,900,000
Predetermined overhead rate based on direct labor cost 55 %
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.*
Gross profit.
Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
Raw Materials (RM) Work in Process (WIP)
Beginning Balance 42,000 17,000 Indirect materials Beginning Balance 9,400 Cost of goods manuf.
RM purchases 191,000 172,000 DM used DM used 172,000
DL used 154,000
Overhead applied
Ending balance 44,000 Ending balance 335,400
Finished Goods (FG) Factory Overhead
Beginning Balance 59,000 Indirect materials Overhead applied
Cost of goods manuf. Indirect labor
Other overhead costs
Ending balance 59,000
Underapplied OH
Income statement (partial)
Sales
Cost of goods sold
Gross profit
Answer:
• Cost of direct materials used $172,000
• Cost of direct labor $154,000
• Cost of goods manufactured $401,700
• Cost of goods sold $427,500
• Gross profit $1,472,500
Explanation:
Please see attached detailed solution to the above questions and answers.
"Sippy was thinking of buying Christich’s house. Henoticed watermarks on the ceiling, but the agentshowing the house stated that the roof had beenrepaired and was in good condition. Sippy was nottold that the roof still leaked and that the repairs hadnot been able to stop the leaking. Sippy bought thehouse. Some time later, heavy rains caused water toleak into the house, and Sippy claimed that Christichwas liable for damages. What theory would he relyon? Decide. [Sippy v. Christich, 609 P.2d 204(Kan. App.)"
Answer: theory of active concealment
Explanation:
Active concealment is when an information that's meant to be shared to an individual is been hidden from such individual by the other party.
In this scenario, the agent intentionally refused giving Sippy the necessary information regarding the house as some facts were hidden.
Therefore, Sippy will rely on active concealment theory.
Despite its drastic downsizing a decade ago under a federally funded bailout and bankruptcy restructuring, General Motors again finds itself with too many U.S. factories that can turn out too many vehicles. GM's factory-utilization rate in North America averaged 95.1% over the past two years, below Ford's 111.9% and Toyota 's 101.4%. (Rates can exceed 100% when factories work a 3rd shift or schedule overtime work on weekends.) The auto industry often runs its factories dawn-till-dusk or even around the clock to boost their efficiency. Factory-utilization rates typically measure how much production capacity a plant uses based on a 16-hour workday. GM says its utilization rate is 100% on average when its round-the-clock truck and SUV lines are figured in with the relatively sleepy factories making cars. GM said it is working to "drive further improvements" in its plant utilization, including adding crossover SUVs to more factory lines. A plant in the Kansas City area that now makes only the Malibu is scheduled to begin assembling a small Cadillac SUV soon. But such a switch-over typically takes car makers several years of lead time, to order and install new assembly-line equipment and tooling.
Answer:
The question is actually missing (see attached image):
the answer is:
D. Less than that of its competitors.
Explanation:
Personally, I believe that GM is an extremely spoiled child that refuses to assume responsibility for its continuous and never ending mistakes. GM has either filed for bankruptcy or threatened to do so twice in the last 30 years or so, and every time the US government has to bail them out. But GM keeps doing things wrong.
It doesn't matter if you like their cars or not, GM is terribly managed. No other company in US history has received so much financial aid from the government and continued to lose money and work inefficiently. The problem is that whenever things go wrong, stockholders lose their money but the executives keep getting tens of millions of dollars. If a company is managed in such a disastrous way, their top management shouldn't get paid that much.
A car factory costs a lot of money, and not using it efficiently is outrageous considering GM's history. If they had never received a cent from the government, then its only their problem. But the government lost $11.2 billion on GM's last bailout. During the 1980s GM lobbied fro the government to impose import quotas on Japanese cars because they were better cars and GM couldn't compete against them. So whenever they do things wrong, big brother has to help them. During the last couple of years GM had to sell most of its foreign operations in order to get cash, and you generally do not make money by selling your assets.
To what three different audiences might you have to give a presentation? How would the presentation differ for each? Which one would be the most challeng- ing for you?
Answer:
Please see explanation below.
Explanation:
°To what three different audiences might you have to give a presentation.
Answer:
• Senior manager
• Project manager
• Team leader.
° How would the presentation differ for each.
• Senior manager. The senior manager will be presented with existing IT structures in a brief manner. In addition to being given the short description of the previous IT system, a short explanation of the newly built and improvement on these existing systems will as well be presented to the senior manager.
• Project manager. A project manager would be presented with detailed description of the project. This is because the project manager must have first knowledge of the whole project and will be held accountable for the success or failure of the project. He would also be giving reports to the senior managers.
• Team leader. The details of the current process as the project progresses will be shared with the team leader.
° Which one will be the most challenging for you.
The most challenging for me will be the project manager because he would have to be presented with a well detailed and thorough description of the whole project. More so, further details of the cost expended on the system will be shared with the project manager.
Which of the following statements is correct regarding expenses.
a. Expenses increase equity.
b. Expenses are increased on the left side of their T-account because they decrease equity.
c. Expenses are reported on the left side of the accounting equation.
d. Expenses result from products or services provided to customers
Answer:
b. Expenses are increased on the left side of their T-account because they decrease equity.
Explanation:
Expenses arise during operation. The conceptual framework defines expenses as decrease in economic benefits as a result of increase in liabilities and decreases in assets. The result being a decrease in equity attributable to shareholders. Examples of expenses include depreciation, interest, utilities and wages expenses.
b. Expenses are increased on the left side of their T-account because they decrease equity.
The following information should be considered:
The expenses should represent the decrease in economic benefits due to which there is an increase in liabilities and decreases in assets. The result is a decrease in equity.Examples include depreciation, interest.Learn more: https://brainly.com/question/13981855?referrer=searchResults
The primary focus for financial accounting information is to provide information useful for: Investing decisions Credit decisions a. Yes Yes b. Yes No c. No Yes d. No
Answer:
a. Yes yes
Explanation:
The primary focus for financial accounting information is to provide useful information to investors for decision making. This is to enable both present and potential investors have prior knowledge and state of affairs of the company or business they want to spend their money on.
However, in the long run, the focus for financial accounting would also include providing useful information for credit decisions. The aforementioned would only occur if a company is able to generate profit hence providing rate of returns to their investors.
Answer:
MAYBE
Explanation:
yes + no = maybe
Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2016. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. What is the value of long term debt?
Answer:
$803,010
Explanation:
Calculation for the value of long term debt
First step is to find the Stockholders' equity
Stockholders' equity = $1,500,000 + $1,468,347 Stockholders' equity= $2,968,347
Last step is to find the Long-term debt
Using this formula
Value of Long-term debt= Total assets – Current liabilities – Stockholders' equity
Let plug in the formula.
Value of Long-term debt= $4,812,369 – $1,041,012 – $2,968,347
Value of Long-term debt = $803,010
Therefore the Value of Long-term debt
will be $803,010
You’ve borrowed $26,838 on margin to buy shares in Company BBYT, which is now selling at $42.6 per share. You invest 1,260 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. At what price will you receive a margin call?
Answer:
the price that received a margin call is $32.77
Explanation:
The computation of the price that received a margin call is shown below:
= Borrowed amount ÷(Number of shares - ( Number of shares × Maintenance margin %))
= $26,838 ÷ (1,260 shares - (1,260 × 35%))
= $32.77
Hence, the price that received a margin call is $32.77
We simply applied the above formula and the same is to be considered
In 2019, Elaine paid $2,960 of tuition and $1,040 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) rev: 02_29_2020_QC_CS-202942 a. Elaine’s AGI is $103,250.
Answer:
$2,500
Explanation:
Elaine can deduct the first $2,000 and then [($4,000 - $2,000) x 25%] = $2,500 (maximum available deduction). Since Elaine files her taxes with her husband and their combined AGI is less than $160,000, then she can claim the full annual credit. The AOTC starts to phase out when the combined AGI is higher than $160,000 and phases out completed when it reaches $180,000.
Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing. Assume that workers in these two industries require similar amounts of training, and they can choose which industry to train for at the beginning of their careers. True or False: Wages in the auto manufacturing industry would be less than those in the aircraft manufacturing industry.
Answer:
False
Explanation:
Due to the fact that the same amount of training is needed in each of the industries, wages would be the same. If wages were higher in the air craft industry, their would be an excess supply of labour in the airline industry. This would pull the wages in the airline industry down until the same wages are earned in both industries
Flyer Corporation manufactures two products, Product A and Product B. Product B is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product A. Product B is the more complex of the two products, requiring three hours of direct labor time per unit to manufacture compared to one and one-half hours of direct labor time for Product A. Product B is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year. Unit costs for materials and direct labor are:
Answer:
since the numbers are missing, i looked for similar questions:
Product A Product B
Direct material $9 $20
Direct labor $7 $15
the predetermined overhead rate = $396,000 / [(5,500 x 1.5) + (22,000 x 3)] = $396,000 / 74,250 direct labor hours = $5.333333 per direct labor hour
total production costs per unit:
Product A = $9 + $7 + ($5.33333 x 1.5) = $24
Product B = $20 + $15 + ($5.33333 x 3) = $51
Define each of the following terms:
(a) Contraction
(b) Business cycle
(c) Trough
(d) Disposable income
(e) Net domestic product
Answer: See explanation
Explanation:
Contraction: Contraction, is a phase of the business cycle that simply occurs gene there's decline in the economy. At this phase, the demand for goods and services reduces and there's decline in growth.
Business cycle: The business cycle shows the movement of the GDP which can either be upward or downward. It shows how the economy's doing.
Trough: The trough is a phase in the business cycle whereby the gross domestic product for a particular economy has stopped reducing and the economy has started to rise.
Disposable income: This is the income that is left with an individual after personal income tax has been removed from the personal income of such individual.
Net domestic product: Net domestic product is when depreciation is subtracted from the gross domestic product.
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $185 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $154 per unit. a. If a transfer price of $168 per unit is established and 33,200 units of materials are transferred, with no reduction in the Components Division's current sales, how much would XPort Industries’ total income from operations increase?
Answer:
$1,029,200
Explanation:
The computation of net income increases is shown below:-
Market purchase cost = 33,200 × $185
= $6,142,000
Component division variable cost = 33,200 × $154
= $5,112,800
Net income increases = $6,142,000 - $5,112,800
= $1,029,200
hence, the net income would be increased by $1,029,000 and the same is to be considered
things that can be used to make money in this pandemic like face mask, face shield give me atleast 5 business.
Answer:
1. A Kobe or Chadwick Boseman picture memorial
2. Toilet paper
3. Paper towels
4. A device that scares away Karens
5. An app that is similar to tiktok
6. A Presidential debate muter
7. Killer Hornet Away spray
France and England both produce wine and cloth with constant opportunity costs. France can produce 150 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. England can produce 50 barrels of wine if it produces no cloth or 100 bolts of cloth if it produces no wine. We can conclude that France produces ________ units of wine and ________ units of cloth and that France consumes ________ units of wine and ________ units of cloth.
a.150; 100; 100; 100
b.150; 0; 100; 50
c.150; 0; 50; 50
d. 0; 100; 50; 50
Answer: B)150; 0; 100; 50
Explanation:
Based on the information that has been provided in the question, for France to produce a barrel of wine, it'll have an opportunity cost of:
= 100/150 = 0.67 bolts of clothes
For England to produce a barrel of wine, the opportunity cost will be:
= 150/50 = 3 bolts of clothes
Based on the explanation, France has a comparative advantage in wine making as its opportunity cost is lower than that of England.
For France to produce a bolt of cloth, the opportunity cost will be:
= 150/100 = 1.5 barrel of wine
For England to produce a bolt of cloth, the opportunity cost will be:
= 50/150 = 0.33 barrel of wine
Here, England has a comparative advantage in cloth production as its opportunity cost is lower than that of France.
Therefore, we can conclude that France produces 150 units of wine and
0 units of cloth and that France consumes 100 units of wine and 50 units of cloth.
The yield on a three-month T-bill is 4%, the yield on a 10-year T-bond is 5.36%. the market risk premium is 10.18%. and the Allen Company has a beta of 1.25. Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is:_______
Answer: 18.09%
Explanation:
Capital Asset Pricing Model = Risk free rate + beta * Market premium
= 5.36% + 1.25 * 10.18%
= 0.18085
= 18.09%
Note: Use the yield on a 10-year T-bond as long term risk free rates take into account more volatility.
During a recessionary gap due to insufficient aggregate demand, the government should ________ spending by an amount determined by the spending multiplier in an attempt to return the economy to potential GDP/full employment. g
Answer:
Increase
Explanation:
Recessionary gap is simply defined as that which happens or occurs when the current/actual is less than the needed that is below potential. It is simply when the equilibrium level of real GDP falls short of potential GDP.
Recessionary gap (expansionary FP) can be handled or fixed by increasing government spending, decrease in tax rates and Increasein transfers