A) consumer spending increased
B) government deficits declined
C) imports dropped relative to exports
D) exports dropped relative to imports
E) our exchange rate improved
Which of the following is a problem with the way we measure GDP
A) only 50,000 households are surveyed
B) it is only a "basket" of goods that is measured
C) the items in the "basket" are only changed every 10 years
D) the value of "home production" is not included
E) we "double count" investment spending
In 2005 Eagle Computers produced a computer which was delivered to the
company's retail outlet in November of 2005. The computer was sold to a
customer in March, 2006. This computer is counted as:
A) consumption in 2005 and as disinvestment in 2006.
B) disinvestment in 2005 and consumption in 2006.
C) investment in 2005 and as consumption and disinvestment in 2006.
D) disinvestment in 2005 and as investment in 2006.
E) GDP in both 2005 and 2006.
The phase of the business cycle in which real domestic output decreases is called:
A) the peak
B) a recovery
C) a recession
D) the trough
E) the expansion
Fred Flugelman quit work to go back to school and get a Master's Degree in Engineering. After graduation he is only able to find part time work at a McDonalds for the first two years. He then finds a full time job once the economy picks up. During his two years at McDonalds:
A) Fred was structurally unemployed
B) Fred was frictionally unemployed
C) Fred was cyclically unemployed
D) Fred was not unemployed
E) Fred was a discouraged worker
High School dropouts have a much higher unemployment than college graduates. This difference most likely reflects:
A) frictional unemployment
B) structural unemployment
C) cyclical unemployment
D) hyper unemployment
E) not unemployment, they are not in the labor force
In order of largest to smallest, the components of GDP for the U.S.A. are:
A) investment, government spending, household consumption, net exports
B) investment, household consumption, government spending, net exports
C) household consumption, government spending, investment, net exports
D) household consumption, investment, government spending, net exports
E) household consumption, investment, net exports, government spending
A) fall by $ 300 billion
B) rise by $ 300 billion
C) fall by $ 400 billion
D) rise by $ 400 billion
E) there is no way to estimate with this information
In a period of high unemployment the Fed. would probably:
A) raise the fed funds rate
B) raise the discount rate
C) raise the required reserve ratio
D) buy bonds through open market operations
E) increase government spending and cut taxes
Keynesian economics are used.
Budgetings: Break-even Analysis and Planning
Budgeting is an important internal activity. Preparing budgets involve forecasting sales and estimating costs.
Prepare a flexible budget for next year for Lowe's. The budget needs to be realistic and based on corporate and economic trends.
Prepare budget based on absorption approach. Don't forget that the presentation of the information is important.
Set up the flexible budget at three levels - minimum, average and high revenues. Use the financial statements and to determine growth trends via computations.
In two pages explain the following in two plus pages:
Explain your estimates and prepare a flexible budget showing the low, the average, and the high revenues and adjust all other line items in the income statement to reflect the revised revenue assumptions.
What is the growth rate in sales for the past three years?
Are revenues and expenses growing at the same rate? What was the experience in the past few years?
What is the current growth rate in the economy?
How are the competitors doing esp. Home Depot?
Current interest rates and tax burdens.View Full Posting Details