According to Keynes's aggregate output-expenditure model, which sector of the economy is most stable, and which is most likely to cause GDP to decline?

Explain why a sales tax is considered to be a regressive tax.

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

$$\begin{array}{lrrr} & 2021 & 2022 & 2023 \\ \hline \text { Cost incurred during the year } & \$ 2,400,000 & \$ 3,600,000 & \$ 2,200,000 \\ \text { Estimated costs to complete as of year-end } & 5,600,000 & 2,000,000 & -0- \\ \text { Billings during the year } & 2,000,000 & 4,000,000 & 4,000,000 \\ \text { Cash collections during the year } & 1,800,000 & 3,600,000 & 4,600,000 \end{array}$$

Complete the requirements assuming that Westgate Construction’s contract with Santa Clara County does not qualify for revenue recognition over time.

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion. Required:

1. Calculate the amount of revenue and gross profit to be recognized in each of the three years.
2. Prepare all necessary journal entries for each of the years (credit "various accounts" for construction costs incurred).
3. Prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. Indicate whether any of the amounts shown are contract assets or contract liabilities.
4. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information:

5. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information:

Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $60,000 at the beginning of each month. At the end of the contract, Velocity either will give Burger Boy a refund of$20,000 or will be entitled to an additional $20,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the$20,000 bonus and calculates the contract price based on the expected value of future payments to be received. After four months, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $20,000. Required: 1. Prepare the journal entry to record revenue each month for the first four months of the contract. 2. Prepare the journal entry that the Velocity Company would record after four months to recognize the change in estimate associated with the reduced likelihood that the$20,000 bonus will be received. 3. Prepare the journal entry to record the revenue each month for the second four months of the contract. 4. Prepare the journal entry after eight months to record receipt of the $20,000 cash bonus.

On January 1 Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $20,000 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional$10,000 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $10,000 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received. Required: Prepare the following journal entries for Revis: 1. Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue. 2. Assuming total cost savings exceed target, prepare the journal entry on June 30 to record receipt of the bonus. 3. Assuming total cost savings fall short of target, prepare the journal entry on June 30 to record payment of the penalty.

F it & Slim (F&S) is a health club that offers members various gym services. Required: 1. Assume F&S offers a deal whereby enrolling in a new membership for $700 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 25% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for$720, and a one-year enrollment in yoga classes sells for an additional $500. F&S estimates that approximately 40% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy. a. How many performance obligations are included in the new member deal? b. How much of the contract price would be allocated to each performance obligation? Explain your answer. c. Prepare the journal entry to recognize revenue for the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. 2. Assume F&S offers a “Fit 50” coupon book with 50 prepaid visits over the next year. F&S has learned that Fit 50 purchasers make an average of 40 visits before the coupon book expires. A customer purchases a Fit 50 book by paying$500 in advance, and for any additional visits over 50 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges$15 to nonmembers who use the facilities for a single day. a. How many separate performance obligations are included in the Fit 50 member deal? Explain your answer. b. How much of the contract price would be allocated to each separate performance obligation? Explain your answer. c. Prepare the journal entry to recognize revenue for the sale of a new Fit 50 book.

The circular flow model shows the flow of?

Does a depression always follow a recession?

Cost-push inflation occurs when there is .

a. Excess inventory.

b. A trade deficit.

c. Rising per-unit production costs.

d. Excess demand for goods and services.

Cost-push inflation occurs when aggregate supply shifts to the right causing the price level to increase along with rising unemployment. True or False.

(a) What are the three factors of production?

(b) What role do the factors of production play in the economy?

Are the buying and selling of stocks centralized activities? Why or why not?

• A. Yes, the New York Stock Exchange is the principal exchange for the nations of the world.
• B. No, people can buy stocks anywhere, and they do not need to go through a market.
• C. Yes, the world’s stock markets are coordinated exchanges, and they are dependent on one another.
• D. No, there are many stock markets around the world, and they are independent of one another.

Examine Figure 13.4. What is the reason for the dollar's greater value in 1933 when compared to 1920? What is the reason for the greater value of the 1933 dollar when compared to 2013?