Assume an open, mixed economy. that is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. given this, aggregate demand is expressed as (c i g x). assume the mpc is .7. assume a stimulus package of $100 billion has been approved by congress and the money has been spent. in order to pay for those expenditures, congress also approved a $100 billion increase in individual income taxes. (this means congress would not allow deficit spending in order to stimulate the economy.) will these actions by congress expand or contract the economy or are they just useless actions

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6