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Wema Imoite

Wema I.

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INSTANT ANSWER

Ivanhoe Company had \( \$ 164,500 \) of net income in 2019 when the selling price per unit was \( \$ 153 \), the variable costs per unit were \( \$ 93 \), and the fixed costs were \( \$ 573,500 \). Management expects per unit data and total fixed costs to remain the same in 2020 . The president of Ivanhoe Company is under pressure from stockholders to increase net income by \( \$ 36,900 \) in 2020. (a) Compute the number of units sold in 2019. units kimmel9781119494850c18_sw_videos-sec-2008 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Compute the number of units that would have to be sold in 2022 to reach the stockholders' desired profit level. units

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INSTANT ANSWER

The controller of Carla Vista Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. \begin{tabular}{lcc|} Month & \( \begin{array}{c}\text { Total } \\ \text { Maintenance Costs }\end{array} \) & \( \begin{array}{c}\text { Total } \\ \text { Machine Hours }\end{array} \) \\ January & \( \$ 2,661 \) & 3,528 \\ February & 3,024 & 4,032 \\ March & 3,629 & 6,048 \\ April & 4,536 & 7,963 \\ May & 3,226 & 5,040 \\ June & 4,931 & 8,068 \end{tabular} Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour \( \$ \) eTextbook and Media Determine the fixed cost components using the high-low method. Fixed costs \[ \$ \] eTextbook and Media

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ANSWERED

Jennifer Stoner verified

Numerade educator

A country is experiencing a recession due to an unexpected shock to aggregate demand. The economy's current level of real GDP is below its long-run equilibrium and the price level is below the equilibrium price level. Government officials must decide whether to implement fiscal policy or allow the economy to return to full employment on its own. a. Suppose that government officials have decided to implement expansionary fiscal policies. What are their desired outcomes? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click again to empty the box for the incorrect answers. increase aggregate supply increase aggregate demand expand real GDP raise the price level reduce unemployment control inflation b. Which of the following policy is consistent with expansionary fiscal policy? Increase sales tax rates. Reduce personal income tax rates. Reduce spending on government infrastructure. Increase the amount of currency in circulation. c. When comparing the two options for restoring the economy to its full-employment level of output, the benefit of allowing the economy to return to full employment on its own is that the economy will recover faster without fiscal policy. full employment is reached with a higher price level. lower unemployment and higher real GDP are reached. full employment is reached with a lower price level.

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INSTANT ANSWER

Suppose a decrease in aggregate demand shifts the economy from equilibrium to \( P_{1} \) and \( Y_{1} \). a. Which of the following evens would ikely couse the decrease in aggregate demand? Gross investment increases as capital units become fully urilized. 2) Personal consumotion falls as workers become concerned about future emplayment prospects. O imponts decrease due to increased foreign prices. b. A decrease in aggregate demand is of policy concern due to the increbse in the O productivany of workers. O price level. - unemployment rate. c. Which polcy action should the federal government enacr? Odecrease real interest rates Tincrease government spending on intrastructure Oncrease personal inceme tax rates d. The size of the policy action should result in an intersection of \( A D \) and \( A S \) that is less than culput \( Y^{*} \) greater than output \( Y \). equal to output \( r \).

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INSTANT ANSWER

Aa increase in coptal siting isle has decreased gross investment, moving the economy out of long run equabrium. The short fun eflect is shewn below, (1) a. How does the short-run equilibrium compare to the initial equilibrium? b. What is the primary concern of policy makers under these conditions? high inflation declining value of the dollar high unemployment c. What policy action might the government take in order to improve economic conditions? d. Use the graph above to depict the goal of the fiscal action discussed in part c. Instructions: Use the tool provided 'Fiscal Action' to show the result of the policy action taken by the government. Plot only the endpoints of the line ( 2 points total). Label your line appropriately. e. What is the desired final outcome after the fiscal policy action and multiplier effect have occurred? A price level (Click to select) \( \sim P^{*} \) and an output level (Click to select) \( \sim Y^{*} \)

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