investment spendingbusiness spending on new goods, such as machinery, equipment, buildings, and inventories, non income determined spending does not come from household earned income fluctuates from year to year bc spending for businesses is very differentretained earningsthe portion of a business's accumulated profits that has been reatained for investment or other purposessaving borrowing relationshipthe relationship between the amont saved by households and businesses and the amount returned to the spending stream through business and household borrowinggovernment purchases of good and servicesgovernmnet spending on new goods and services; nonincome determined spendingexportsgoods and services that are sold abroadimportsgoods and services purchased from abroadnet exportsexports minus imports, is postitive when exports exceed imports and is negative when imports exceed exportsmultiplier effectthe change in total output and income generated by a change in non income determined spending is larger than , or a multiple of, the spending itself initial change in a nonincome determined spending percentage of addtional income not spend = total change in output and incomeexpectationsanticiptations of future; can affect current actions by households and businesses and the likelihood that the future events will occurfiscal policyinfluencing the levels of aggregate output and employment or prices through changes in federal government purchases, transfer payments, and or taxesmonetary policyinfluencing the levels of aggreagate output and employment or prices through changes in interest rates and the money supply

Sets found in the same folder

Chapter 2: Economic Decision Making and Econo…

34 terms

sara_coe

Chapter 3: Demand, Supply and Price Determina…

40 terms

sara_coe

Chapter 10: Households and Businesses: An Ove…

13 terms

sara_coe

Chapter 11: Benefits, Costs, and Maximization

31 terms

sara_coe

Other sets by this creator

17 terms

35 terms

8 terms

35 terms

Verified questions

business math

Use the data as given, along with dimensional analysis, to convert the given measurement of volume or capacity to the unit indicated. Where necessary, round answers to two decimal places.

$25,000 \mathrm{ft}^3$ to $\mathrm{gal}$

Verified answer

accounting

A recent annual report issued by The Gap, Inc., revealed the following data:

\begin{array}{|cc} & & \textbf{End of year} & \textbf{Beginning of year} \\ \text {Current assets } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$ 4.0 \text{billion} & \$4.1 \text{billion}\\ \text {Current liabilities} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & \$ 2.2 \text{billion} & \$ 2.4 \text{billion} \\ \text { Stockholder'sequity } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots& \$ 4.4 \text{billion} & \$ 4.3 \text{billion} \\ \end{array}

The company's income statement reported total annual revenue of $\$ 14.5$ billion and net income for the year of $\$ 967$ million.
Instructions
a. Evaluate The Gap's profitability by computing its net income percentage and its return on equity for the year.

Verified answer

accounting

In its first year of operation, Sheridan Company recognizes $30,000 in service revenue,$7,200 of which was an account and still outstanding at year-end. The remaining $22,800 was received in cash from customers.

The company incurred operating expenses of$16,600. Of these expenses, $13,520 were paid in cash;$3,080 was still on account at year-end. In addition, Sheridan prepaid $2,650 for insurance coverage that would not be used until the second year of operations.

Required: Calculate the first year's net earnings under the cash basis of accounting and the first year's set earnings under the accrual basis of accounting.

Verified answer

economics

In late 2010, the unemployment rate was 9.6 percent. Despite the fact that the economy had been growing out of the recession for over a year (real GDP was up 3% by Q2 2010), job growth in 2010 was modest. While the fiscal stimulus package helped, labour was "stuck in the mud." Which of the following factors contributed to the problem and how significant were they? a. Employment and unemployment are always lagging indicators because hiring and firing are difficult in a downturn. b. Productivity has increased significantly over the last decade; people are working harder for less pay—in short, businesses are "mean and lean." c. Construction employment, which has traditionally been a driver of recovery, has stagnated, owing largely to massive overbuilding. d. The United States has minimum wage laws. e. Wages are sticky on the downside, impeding labour market clearing. f. The Census Bureau hired and then fired thousands of workers, causing the data to be skewed. Choose two of these statements and write a brief essay about them. Use data to back up your claims.

Verified answer