This question compares the effects of a tax cut on aggregate demand and aggregate supply. a tax cut of 150 is targeted to business enterprises so that, as their after-tax profits rise, they raise their spending on investment goods by the full 150. when subsequent rounds of increases in income occur, however, there is a normal marginal propensity to consume, and a multiplier of two. investment has the following effect on aggregate supply: for every $3 of investment goods produced, annual output rises by $1.a) what increase in aggregate demand will result from this tax cut? b) what increase in aggregate supply will occur in the first year? c) comparing your answers in a) and b), which impact is bigger? d) assuming the tax reduction is permanent, how many years will it take before the effects on aggregate demand and aggregate supply are equal? e) suppose the tax cut is not quite as well targeted toward the supply side as the government hoped. of the cut of 150, initially 60 is spent on investment, 60 is spent on consumption, and 30 is saved. answer questions a) through d) above under these circumstances.

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below. a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below. a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02