ECON: MACRO4 (with CourseMate, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423623
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 11, Problem 1.8PA
To determine
The economy with an expansionary gap.
Concept Introduction:
Fiscal Policy: Fiscal policy is the policy by which government regulates the nation’s economy by adjusting the government spending and controlling the tax rates. It tries to influence the
Recessionary Gap: Recessionary Gap is the gap between actual output and potential output under full employment situation when actual output is less than potential output.
Expansionary Gap: Expansionary Gap is the gap between actual output and potential output under full employment situation when actual output is more than potential output.
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Students have asked these similar questions
What are the answers for a,b,c,d? Are they supposed to be numerical answers or in terms of a variable?
Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of
$60,000 per year but gave up a job with a salary of $80,000 to run the business.
○ A. Her accounting profits are $0. Her economic profits are - $60,000.
○ B. Her accounting profits are $0. Her economic profits are - $40,000.
○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000.
○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.
Select a number that describes the type of firm organization indicated.
Descriptions of Firm Organizations:
1. has one owner-manager who is personally responsible for all aspects of the business, including its debts
2. one type of partner takes part in managing the firm and is personally liable for the firm's actions and debts, and the other type of partner takes no part in the management of the
firm and risks only the money that they have invested
3. owners are not personally responsible for anything that is done in the name of the firm
4. owned by the government but is usually under the direction of a more or less independent, state-appointed board
5. established with the explicit objective of providing goods or services but only in a manner that just covers its costs
6. has two or more joint owners, each of whom is personally responsible for all of the partnership's debts
Type of Firm Organization
a. limited partnership
b. single proprietorship
c. corporation
Correct Number
Chapter 11 Solutions
ECON: MACRO4 (with CourseMate, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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