1) Use the AS/AD framework to show the separate effects on GDP‚ inflation and public sector borrowing on any single national economy of: a) cut in public spending b) an increase in the rate of VAT (sales tax) c) a slowdown in the GDP growth of less developed economies. (Make sure that you include clear and appropriate diagrams for this question) According to Begg and Ward (2009) fiscal policy is the government’s decisions regarding taxation and spending to influence level
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Memorandum To: From: Subject: Depreciation Value of your Special Purpose Machine Date: Congratulations on your purchase of this special purpose machine. With every purchase of a new machinery comes the depreciation value of the machine. In order to report the value of this machine‚ we first must figure out the total amount paid for your machine. It says here you purchased the machine for an invoice price of $1‚200‚000 and the freight cost was $6000 and the cost for installation was $64000
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the importance of depreciation expenses. Depreciation as a concept and in practice plays a very important role in a company ’s cash flow hence in funding. The reason ’s are basically two‚ firstly because depreciation is a way of self finance for an organization and secondly because is a way of decreasing taxes that the government claims as the company doesn ’t have to pay taxes on depreciation which consequently enlarges the cash flow of the company. As a term depreciation in accounting is the
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Since the issue of Chinese currency exchange rate against U.S dollar has been capturing widespread attention‚ the purpose of the study proposed herein is to profit from empirically analyzing the income elasticity and elasticity of exchange rate of gross Sino-US trade and commodities from ten main categories1 by employing quarterly data from 1996 to 2009‚ aiming to judge whether Chinese currency needs an appreciation or not. Ever since the 1980s‚ due to its upgrade in industrial structure‚ the United
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Australia’s GDP and Government Expenditure GDP or Gross Domestic Product measures the value of production and the income earned from that production that occurs within a nation’s boundaries (Hill‚ 2007). The total GDP value of Australia currently represents a 2.45 percent of the world economy. From 1960 to 2012 the yearly average of the Australian GDP was 325.7 USD Billion‚ with a reported all time high of 1520.6 USD Billion in December of 2012 and record low of 18.6 USD Billion in December of
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Behind the Curve Behind the Curve Globalization and International Terrorism Audrey Kurth Cronin he coincidence between the evolving changes of globalization‚ the inherent weaknesses of the Arab region‚ and the inadequate American response to both ensures that terrorism will continue to be the most serious threat to U.S. and Western interests in the twenty-ªrst century. There has been little creative thinking‚ however‚ about how to confront the growing terrorist backlash that has been unleashed
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Limitations of the Lorenz Curve The Lorenz Curve illustrates the degree of equality (or inequality) of distribution of income in an economy. It plots the cumulative percentage of income received by cumulative shares of the population and includes a straight line to illustrate perfect income equality. Thus‚ the closer the Lorenz curve is to the straight line‚ the greater the equality in income distribution‚ while‚ the further away it is from the straight line‚ the more unequal the distribution
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Assignment Questions Question 1 Frank Crosby (who has never owned or run a business before) started a lawn mowing business (Crosby’s Cutters) as a temporary job/business which he intended to run until he started his business degree at the University of Woop Woop in Semester 2‚ 2014. To start the business on 1 April 2014‚ he deposited $1‚000 into a new bank account opened in the name of the business. The $1‚000 consisted of a $600 loan from his father and $400 of his own money. Frank rented
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ELEMENTS OF DEPRECIATION COMPUTATION Depreciation accounting may be defined as a systematic procedure for allocating the cost of a long-lived asset over its useful life. The determination of the depreciation expense of a period depends on three basic elements. These are: • Depreciation Base. The cost to be allocated over the period of use is known as the depreciation base. This consists of the initial purchase cost of the asset minus any salvage value expected at the time of retirement plus
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Expenditures‚ Revenues‚ and Budgets Expenditures‚ Revenues‚ and Budgets AJS 532 Expenditures‚ Revenue‚ and Budgets Budgeting is an important subfield of public administration (Tyer & Willand‚ 1997). A budget system balances expenditures and revenues (Smith & Lynch‚ 2004). In public budgeting‚ revenues are funded by sources. These such sources are fees and special assessment‚ lotteries‚ and public‚ and other miscellaneous revenue. Another important factor of budgeting
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