For each of the total gross earnings amounts recorded in the past five pay weeks for Hot Suds Car Wash, determine these taxes: -employer’s FICA taxes (social security 6.2%, Medicare 1.45%) -federal unemployment tax (.8%) -state unemployment tax (5.4%). Use the form provided in the working papers. None of the employees has reached the taxable earnings limit. Total gross earnings: 1. $914.80 2.$1,113.73 3. $2,201.38 4.$791.02 5. $1,245.75

Which occurred during the Great Depression? Check all that apply.

a) increased aggregate demand

b) new forms of money

c) falling wages

d) increasing prices

e) plummeting growth

f) surging unemployment

The following account balances appear in the general ledger for Soap Box Laundry on April 30. Record the payment of the four liability accounts on page 34 of the general journal.

$$\begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{Social Security Tax Payable} & \text{$\$ 318.55$}\\ \text{State Income Tax Payable} & \text{205.60}\\ \text{Medicare Tax Payable} & \text{113.28}\\ \text{Employees' Federal} & \text{ }\\ \text{Income Tax Payable} & \text{286.00}\\ \end{array}$$

The following list includes several payroll-related items used in preparing the weekly payroll for Outdoor Adventures. These items are included in either the entry to record the payroll or the entry to record the employer’s payroll taxes. Employees’ federal income tax, Employer’s social security tax, U.S. savings bonds, Employer’s Medicare tax, Federal unemployment tax, Employees’ state income tax, Union dues, Employees’ social security tax, State unemployment tax, Employees’ Medicare tax. Use the form provided in your working papers. Place a check mark in the column that describes the entry in which the item is recorded: -entry to record the payroll -entry to record the employer’s payroll taxes.

Showbiz Video completed the following payroll transactions during the first two weeks of December. Showbiz Video pays its employees on a biweekly basis (every two weeks). In your working papers: 1. Record the December 13 transactions on page 38 in the general journal. 2. Post both payroll entries to the appropriate general ledger accounts. 3. Journalize and post the December 16 transactions. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Dec. 13} & \text{Wrote Check 2206 to pay the payroll of \$3,840.58 (gross}\\ \text{ } & \text{earnings) for the pay period ending December 13. The}\\ \text{ } & \text{following amounts were withheld: FICA taxes, \$238.12 for}\\ \text{ } & \text{social security and \$55.69 for Medicare; employees’ federal}\\ \text{ } & \text{income taxes, \$639.00; employees’ state income taxes, \$96.02;}\\ \text{ } & \text{insurance premium, \$21.00; U.S. savings bonds, \$20.00.}\\ \text{13} & \text{Recorded the employer’s payroll taxes (FICA tax rates, 6.2\\% for}\\ \text{ } & \text{social security and 1.45\\% for Medicare; federal unemployment}\\ \text{ } & \text{tax rate, 0.8%; state unemployment tax rate, 5.4%). No}\\ \text{ } & \text{employee has reached the maximum taxable amount.}\\ \text{16} & \text{Paid the amounts owed to the federal government for }\\ \text{ } & \text{employees’ federal income taxes and FICA taxes, Check 2215. }\\ \text{16} & \text{Purchased U.S. savings bonds for employees for \$100.00, }\\ \text{ } & \text{Check 2216. }\\ \text{16} & \text{Paid \$148.00 to American Insurance Company for employees’}\\ \text{ } & \text{insurance, Check 2217.}\\ \end{array} $$ Identify the payroll accounts that have a balance after entries have been posted.

The payroll of YellowCard Company for September 2020 is as follows.

Total payroll was $480,000, of which$110,000 is exempt from Social Security tax because it repreented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of$7,000 was $400,000. Income taxes in the amount of$80,000 were withheld, as was $9,000 in union dues. The state unemployment tax is 3.5%, but YellowCard Company is allowed a credit of 2.3% by the state for its unemployment experience. Also, assume that the current FICA tax is 7.65% on an employee's wages to$128,400 and 1.45% in excess of $128,400. No employee for YellowCard makes more than$125,000. The federal unemployment tax rate is 0.8% after state credit.

Prepare the necessary journal entries if the wages and salaries paid and the employer payroll taxes are recorded separately.

Imagine that you are a policymaker trying to decide whether to reduce the rate of inflation. To make an intelligent decision, what would you need to know about inflation, unemployment, and the trade-off between them ?

(a) What might cause inflation in food prices? (b} How would you react to higher food prices? (c) How could this type of inflation contribute to unemployment and poverty? Explain your answers.

U.S. Unemployment. Barron's reported that the average number of weeks an individual is unemployed is $17.5$ weeks. Assume that for the population of all unemployed individuals the population mean length of unemployment is $17.5$ weeks and that the population standard deviation is 4 weeks. Suppose you would like to select a random sample of 50 unemployed individuals for a follow-up study.

c. What is the probability that a simple random sample of 50 unemployed individuals will provide a sample mean within $1 / 2$ week of the population mean?

Milton Friedman argued that consumers are more likely to alter their behavior based on changes in the unemployment rate. short-term changes in the economy. long-term changes in the economy. changes in the inflation rate.

The employer is responsible for which of the following payroll taxes? a. 6.2% FICA- OASDI tax c. Federal and state unemployment taxes h. 1.45% FICA- Medicare tax d. All of the above

BUSINESS: Phillips Curves Unemployment and inflation are inversely related, with one rising as the other falls, and an equation giving the relation is called a Phillips curve after the economist A. W. Phillips (1914-1975). Between 2000 and 2010 , the Phillips curve for the U.S. unemployment rate $x$ and Consumer Price Index (CPI) inflation rate $y$ was

$$y=45.4 x^{-1.54}-1$$

where $x$ and $y$ are both in percents. Find the derivative of this function at each $x$-value and interpret your results.

a. 3 percent

b. 8 percent

State True, False or Uncertain for the following and justify in short : The fact that productivity growth was unexpectedly high in the second half of the 1990s can be used to explain the apparent decrease in the natural rate of unemployment in the United States.

Illustrate the following with supply and/or demand curves: a. A situation of excess labor supply (unemployment) caused by a "minimum wage" law. b. The effect of a sharp increase in heating oil prices on the demand for insulation material.