Reference no: EM13768104

In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies.

Respond to the points in your paper on the actions the government would take to address expansionary fiscal and monetary policies:

Expansionary Fiscal Policy:

Explain the actions the federal government would take while engaging in expansionary fiscal policy in terms of the following:

The necessary change in taxes and government spending,

The effect on aggregate demand, GDP, and employment.cost Behavior

Identify which of the following costs are fixed and which are

(a) Wages paid to temporary workers
(b) Property taxes on a factory building
(c) Property taxes On an administrative building
(d) Sales commission
(e) Electricity for machinery and equipment in a plant
(f) Heat and air conditioning for a plant
(g) Salaries paid to design engineers
(h) Regular maintenance on machinery and equipment
(i) Basic raw materials used in production
(j) Factory fire insurance

Classify the following costs into either being product cost or period cost:

(a) Raw material costs
(b) Income taxes paid
(c) Interest expenses on borrowed funds
(d) Wages incurred in producing products
(e) Fire insurance premium paid on factory buildings
(f) Electric bill for the warehouse operation
(g) Salary paid for engineers
(h) Material handling cost related to production
(0 Salary paid for plant manager
(j) Leasing expense for forklift trucks in warehouse operation
(k) Mortgage payments on factory buildings