In order to counter the current recession, Congress increases welfare and unemployment transfers. What is the short-run impact of the government's actions on price level and output

Answers

Answer 1

Answer: Price level decreases and output increases in short- run aggregate.

Explanation:        

Short-run aggregate can be defined as the decrease in the price level. It affects the production costs and also include the taxes in the product cost. The price of subsides, price of labor or wages and price of raw materials remain unaffected by this. Output also increases in this. So in case of short run impact of the recession the output increases and prices of goods and services decreases.

Answer 2

Answer:

Decrease Increase

Explanation:


Related Questions

Which of the following statements accurately describes the free enterprise
system in the United States?

Answers

Answer:

The statement which accurately describes the free enterprise system in the United States is:

A market system.

Explanation:

The free enterprise system or capitalist system is a free market system where the government does not restrict much of the business activities or property ownership of its citizens. The main features of a free enterprise system are citizens can own private property, supply and demand (or market forces) drive productive activities, consumers and producers are free to make their own economic decisions, and the citizens can freely accumulate wealth.  These features expand on the four great principles of a free enterprise system, which are: private property rights, profit motive, equal individual rights, and unrestricted competition.

bonds is selling at $1,132, with 15 years to maturity; it makes an annual coupon payment at 8%. 5 years after the issue, the market interest rate declined and the corporation decided to call the bond at $1,080. The face value of the bond is $1,000. What is the Yield to Call on the bonds

Answers

Answer:

6.26%

Explanation:

The yield to call is the rate of return earned by bondholders over the 5-year period before the bonds were called.

It can be determined using excel rate function as well as financial calculator as shown thus:

=rate(nper,pmt,-pv,fv)

nper=the period between bond issuance and the call in years=5

pmt=annual coupon=face value*coupon rate=$1000*8%=80

pv=the initial purchase price=-1132

fv=the price at which the bonds were called after 5 years=1080

=rate(5,80,-1132,1080)=6.26%

Financial calculator:

N=5

PMT=80

PV=-1132

FV=1080

CPT I/Y=6.26%

A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results: Show your work.
Machine Total Defectives
1 23
2 15
3 29
4 13
What is the sample proportion of defectives for machine # 1?
A) .023
B) .02
C) .0115
D) .0058
E) .005

Answers

Answer:

A) 0.023

Explanation:

Sample size = 1,000

Number of defectives collected from Machine #1 = 23

So, the sample proportion of defectives for machine #1 = Number of defective output / Sample size  = 23/1000 = 0.023

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31.
Cash balance per books, May 31 $3,457
Deposits in transit 131
Notes receivable and interest collected by bank 853
Bank charge for check printing 47
Outstanding checks 1,567
NSF check 180
a. $3,816.
b. $2,730.
c. $1,195.
d. $1,979.

Answers

Answer:

$4,083

Explanation:

Preparation of the Adjusted Cash Balance per Books on May 31

Adjusted Cash Balance per Books on May 31

Cash Balance per Books on May 31 $3,457

Add Notes Receivable and Interest Collected by Bank $853

Less Bank Charge for Check Printing ($47)

Less NSF Check ($180)

Adjusted Cash Balance per Books on May 31 $4,083

Therefore the Adjusted Cash Balance per Books on May 31 will be $4,083

Why are short sentences and short paragraphs appropriate for business communication?

Answers

Answer:

Objs. 4 For business communications it is essential to express ideas and facts eloquently. The shorter the sentences and paragraph are, the brief the letter, memo or notice. This will save the reader's and writer's time.

The possible choices are ; production cost report, total manufacturing cost per unit, equivalent units of production, units transfered out, unit production costs, cost reconciliation schedule, total units accounted for, and physical units.
Match the following statements to the appropriate terms.
A summary of both production quantity and cost data for a production department.
Shows that the total costs accounted for equal the total costs to be accounted for.
Work done during a period expressed in fully completed units.
Costs expressed in terms of equivalent units of production.
Actual units to be accounted for during a period, irrespective of any work performed.
Units transferred out during the period plus units in ending work in process.
Unit materials costs plus unit conversion costs.
Total units accounted for minus units in ending work in process.

Answers

Answer:

           Statement                                                  Appropriate terms

A summary of both production                       Production cost report

quantity  and cost data for a  

production department.  

Shows that the total costs accounted           Cost reconciliation schedule

for  equal the total costs to be

accounted for.

Work done during a period expressed         Equivalent units of production

in fully completed units.

Costs expressed in terms of equivalent        Unit production costs

units of production.

Actual units to be accounted for during        Physical units

a period, irrespective of any work

performed.

Units transferred out during the period        Total units accounted for

plus units in ending work in process.

Unit materials costs plus unit                        Total manufacturing cost

conversion costs.                                            per unit

Total units accounted for minus units           Units transferred out

in ending work in process.

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