As a result, the quantity and price of good A increase. a. Compute nominal GDP in the base year and later year. b. Compute real GDP in the base and later years (in base-year prices). c. Compute the GDP deflator in the later year, using your answers to parts a and b. d. Compute a fixed-weight price index for the later year, using the base-year quantities as weights. e. Which price index rises faster, the GDP deflator (Paasche) index or the fixed-weight index (Laspeyres) index 1 Question 3 (20 marks) .
Calculate the PAYG instalment income for the quarter. FBT rate varied Variation of FBT Fringe benefits ATO instalment preprinted on BAS 19 F1 2 400 Estimated total fringe benefits tax payable for year Varied fringe benefits tax instalment amount Transfer the amount at F3 to 6A on the BAS Summary F2 F3 F4 12 000 3 000 30 Reason for variation PAYG rate varied PAYG income tax instalment For the QUARTER from 1 Oct 20XX to 31 Dec 20XX Option 2: Calculate PAYG instalment using income times rate PAYG instalment income T1 $ 5 5.61 4 5 % 6
Find the real return on the following investments: Stock Nominal Return Inflation A 10% 3% B 15% 8% C -5% 2% ? Find the real return, nominal after-tax return, and real after-tax return on the following: Stock Nominal Return Inflation Tax Rate X 13.5% 5.0% 15% Y 8.7% 4.7% 25% Z 5.2% 2.5% 28% How are industry-operating differences reflected in a firm’s financial statements? week 6 Assignment
Answer: D - The Fed uses three policy tools to manipulate the money supply: ________, which affect reserves and the monetary base; changes in ________, which affect the monetary base; and changes in ________, which affect the money multiplier. A) open market operations; borrowed reserves; margin requirements B) open market operations; borrowed reserves; reserve requirements C) borrowed reserves; open market operations; margin requirements D) borrowed reserves; open market operations; reserve requirements Answer: B - The primary indicator of the Fedʹs stance on monetary policy is A) the discount rate. B) the federal funds rate. C) the growth rate of the monetary base. D) the growth rate of M2.
They also made this decision to help ensure that inflation is a consistent level with its mandate. “In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability” (Board of Governors Federal Reserve System,
Federal Reserve Paper Monetary policy refers to the engagements taken by a central bank, such as the Federal Reserve, to impact the accessibility and rate of money and credit to assist in promoting national economic goals. After reading this paper, you will have a thorough understanding of the purpose and function of money and the importance of the central bank and our monetary system. We will address the direction of our recent monetary policy and list one policy action that the Federal Reserve has taken to confirm that direction. Finally, we will review how monetary policies effects the economy’s production and employment. The Purpose and Function of Money The main purpose and function of money are to convey a synthetic value
How does Net Sales change during these three years? What could be the reason for the change in Net Sales in 2011? According to the Risk factors mentioned in the Financial Statements, factors such as current economic conditions, timing of new merchandise releases and promotional events, changes in merchandise mix, success of marketing programs, and weather conditions are the main factors that affect sales in a company such as The Gap Inc. 4. What was the change of Retained Earnings from the year 2010 to 2011? Retained earnings increase by $597.00 they raised from $11,767.00 to $12,364.00, an increase approximately of 5.07% And what was the Net Income for the year 2011?
Economic Health Memo EOC/212 May 9, 2011 Economic Memo Gross Domestic Product is the official measure used in the United States to measure the total output of goods and services within the United States economy. The GDP measures the output off all labor and capital within the United States. This “data is collected monthly, quarterly and annually by government agencies, companies and firms and then compiled into hundreds of statistics” (Anderson, para. 2-7). These statistics include the “consumer price index (CPI), the employment report, and summaries of corporate and individual tax returns” (Anderson para.
The Federal Reserve Eco/212 The Federal Reserve The Federal Reserve, also known as the Fed, is the Central Bank of the United States (Investopida ULC, 2011). Central banks located are worldwide (Investopida ULC, 2011). Central banks manage money and have many other duties (The Federal Reserve, 2011). Different types of monetary policies are used according to the economic outlook (The Federal Reserve, 2011). Monetary policies have different effects on an economy’s production and employment.
Government of a nation always tries to keep their inflation low because if the price of a goods and services goes higher than it will be out of limit of the people and it will be hard to survive. Present inflation condition in UK: The following is the present inflation statistic from Nation Statistic of UK. http://www.tradingeconomics.com/united-kingdom/inflation-cpi In the above figure we have a National statistics of UK’s inflation rates from 2012-2013. When we studied the figure and we can see that the inflation rate is 5% before 2012 and 2.7% in present state, what does that means? The higher the rate there will be more increase in price of goods, which is called high inflation.