Answer: GDP data that has been adjusted for changes in the price level
Explanation:
Real GDP refers to the Nominal GDP adjusted for inflation. Nominal GDP calculates the value of final goods and services in the Economy by using the price levels of that year so if inflation has occurred, comparing it to previous years would be inaccurate.
The Real GDP would use the price levels of a base year to calculate the GDP of the current year so that the effect of inflation may be negated and the real growth of the economy can be seen.
Given an upward sloping aggregate supply curve, which of the following is most likely to occur if the fed pursues restrictive monetary policy?
a. The equilibrium price level and output will both increase.
b. The equilibrium price level and output will both decrease.
c. The equilibrium price level will decrease but output will stay the same.
d. The equilibrium output will decrease but the price level will stay the same.
Answer:
b. The equilibrium price level and output will both decrease.
Explanation:
If the Fed decides to use restrictive monetary policy money supply to the economy will be reduced. Instruments for reducing money supply is by using interest rate, open market operations, and reserve ratio.
When money supply is reduced, aggregate demand will reduce (shift to the left) because people will have less money to spend. The real output will also reduce because there is reduced demand for goods and services.
Attached is a diagram illustrating this. Equilibrium price moves from A to B, and output decreases from Y1 to Y2
Preferred stockholders have priority over common stockholders with respect to dividends, because dividends must be paid on preferred stock before they can be paid on common stock. However, preferred and common stockholders normally have equal priority with respect to liquidating proceeds in the event of bankruptcy.A. TrueB. False
Answer:
B. False
Explanation:
Preference Shareholders are entitled to receive their return on capital before the ordinary shareholders when when a company is wound - up or liquidated.
Which two disadvantages are associated with collaborative business message writing?
It may affect the message's clarity.
It may lead to groupthink.
It doesn't allow for proper work distribution.
It requires teamwork.
It doesn't allow for revision.
Answer:
It may lead to groupthink.
It may affect the message's clarity.
Explanation:
Collaborative business message writing has to do with when a group of people creates a project or business message together rather than doing it individually.
Groupthink describes when a group sets asides their personal belief to get a consensus within a group and this can lead to bad decisions as members of the group can sidestep problems in order to fit into a group's decisions.
The clarity of the message can be affected because the different members of the group all have different ideas and would try to sacrifice some of their ideas for the group.
What recommendations would you give to Sundar Pichai, CEO of Google, to compete more effectively against Microsoft? To continue to sustain its competitive advantage
Answer: Optimize more ways in how the search engine can reach people better and solve problems with little or no challenges
Explanation:
Google has to look for ways in how the search engines can reach a wider audience and how they can easily answer people's question without much referrals. Most people get tired when they come online to search for an answer to a question and they are being referred severally to other sites and they end up not getting the desired answer at the end f their search. Google should look for ways in designing their tool to provide answers immediately with little or no bulky referrals.
Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit Variable cost per unit Fixed expenses for the month Currently selling units Management is discussing increasing the price to to cover an increase in fixed expenses of . Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented?
Answer:
The remaining part of the question is:
Round up to the newest whole unit.
OA . 3,572 units
OB. 4,000 units
OC. 3,935 units
OD. 5.269 units
Correct Answer:
OC. 3,935 units
Explanation:
Current sales 2000000 = 4000*500
Less: Variable costs 880000 = 4000*220
Less: Fixed costs 1000000
Current operating income 120000
Fixed costs 1080000 =1000000+80000
Add: Operating income 120000
Required Contribution margin 1200000
Divide by Contribution margin per unit 305 =525-220
Units to be sold 3935
To maximize profit, a perfectly competitive firm:_____.
a) should sell the quantity of output that results in a value for total revenue that is equal to total cost.
b) Should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost.
c) should produce the quantity of output that results in the greatest difference between total revenue and total cost.
d) shouls sell thw quantity of output determined by the interaction between the indusrey demand and supply.
Answer:
D
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Profit is maximised where marginal cost equals marginal revenue.
During the past year a company had total fixed costs of $700,000. Its product sold for $93 per unit. Variable costs during this time equaled $45 per unit. Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs, but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1,000,000. (Round answer to complete units.)
Answer:
The company must sell 34706 units
Explanation:
To calculate the units required to earn a target profit of $1000000 next year, we will use the break even analysis modified for target profit calculation.
The break even in units is calculated by dividing the Total fixed costs by the contribution margin per unit. To calculate the units required for target profit, we add the target profit amount to the fixed cost and divide it by the contribution margin per unit. Thus, the formula is,
Units required for target profit = (Total fixed cost + target profit) / Contribution margin per unit
Where contribution margin per unit = Selling price per unit - Variable cost per unit
New fixed costs = 700000 + 700000 * 0.1 = 770000
New variable cost = 45 - 3 = 42
New contribution margin per unit = 93 - 42 = $51
Units required for target profit = (770000 + 1000000) / 51
Units required for target profit = 34705.88 rounded off to 34706 units
"An NMS stock is current quoted at $16.10 Bid - $16.30 Ask. A customer wishes to place an order to buy 1,000 shares of the stock at $16.111. The registered representative should:"
Answer:
"An NMS stock is current quoted at $16.10 Bid - $16.30 Ask. A customer wishes to place an order to buy 1,000 shares of the stock at $16.111. The registered representative should:"
buy the 1,000 shares of NMS stock when the price is $16.111 or below.
Explanation:
This order by the customer is a limit order. It indicates the price at which the registered representative should buy the stock of NMS. A limit order means that the order can only be filled at the specific price or better (below the limit). It is not like a stop order which triggers at the specified price and will then be filled at the prevailing market price, whether it is below or above the stated price.
Lucky Lee, a video-game store in New York city, purchases a game machine directly from Taiwan for$30,000. In the U.S., the same machine will probably cost at least $36,000. Pick the most appropriateaccounting action for Lucky Lee:Record the machine at $36,000Record the machine at $30,000Record the machine for [($30,000+$36,000)/2] = $33,000Have the machine examined by an independent appraiser and record it at the appraised value
Answer:
Record the machine at $30,000
Explanation:
Since as we can see that the purchase value of the game machine is $30,000 and the other values are given
So based on the historical cost principle, the machine should be recorded at the purchased cost, acquired cost, original cost
here in the given situation, the machine is actually purchased at $30,000 so the same is to be recorded
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $27,000, would be replaced by a new machine. The new machine would be purchased for $432,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $149,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.):
Answer: 19.01%
Explanation:
The simple rate of return is the Income that came from an investment divided by the cost of the investment.
It is therefore expressed by;
Simple rate of return = Net Income / Initial investment
Initial investment
= Price of new machine - salvage value of old machine
= 432,000 - 27,000
= $405,000
Net Income
= Income - depreciation of new machine
= 149,000 - (432,000/6)
= $77,000
Simple rate of return
= 77,000/405,000
= 19.01%
Answer:
17.82%
Explanation:
As we know that:
Simple Rate Of Return = Net Operating Income / Initial Investment
Here
Initial Investment is $432,000
Net Operating Income = Annual Cost Savings - Annual Depreciation
Here
Annual Cost Savings are $149,000
Annual Depreciation = $432,000/6 = $72,000
By putting values, we have:
Net Operating Income = $149,000 - $72,000 = $77,000
Now by putting values in the above bold equation:
Net Operating Income = $77,000 / 432,000 = 17.82%
A(n) ________ has no impediments to the free flow of goods and services, such as trade barriers.
Answer:
efficient market
Explanation:
You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the
overall price level. Before taxes were paid, you experienced:_______.
a. both a nominal gain and a real gain, and you paid taxes on the nominal gain.
b. both a nominal gain and a real gain, and you paid taxes only on the real gain.
c. a nominal gain, but no real gain, and you paid no taxes on the transaction.
d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.
Answer:
d. a nominal gain, but no real gain, and you paid taxes on the nominal gain.
Explanation:
Nominal gain: In business, the term "nominal gain" is described as the increase or hike in the price or cost of an asset as per the "federal tax code" and is also denoted as "nominal amount" and is considered as non-adjustable for inflation. However, when a specific product or asset or stock is being sold more than its "actual price" or above its "purchase price" then a gain or profit is noted and hence is taxed.
In the question above, the correct answer is option D.
Assuming the preferred stock is cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for 2018 and 2019 if total dividends are $9,000 in 2018 and $45,000 in 2019. Assume no changes in preferred stock and common stock in 2019. (Assume all preferred dividends have been paid prior to 2018. Complete all input boxes. Enter a "O" for zero amounts. For the current year preferred dividend, be sure to enter the calculated dividend on the "current year dividend" line and the paid out dividend on the "total dividend to preferred stockholders" line.) Northern's 2018 dividend would be divided between preferred and common stockholders in this manner: 9000 Total Dividend 2018 Dividend to preferred stockholders: Dividend in arrears Current year dividend Total dividend to preferred stockholders 8800 (9000) Dividend to common stockholders
Answer:
The first part of the question is missing, so I looked for a similar question. I'm not sure that it is the same, but it can help you understand how to solve it.
Paid-In Capital:
Preferred Stock—5%, $11 Par Value; 150,000 shares authorized, 20,000 shares issued and outstanding : $220,000
Common Stock—$2 Par Value; 575,000 shares authorized, 380,000 shares issued and outstanding : 760,000
total dividends distributed:
2018: $9,000
2019: $45,000
preferred dividends = $220,000 x 5% = $11,000
Distributed dividends:
2018:
$9,000 in dividends distributed to preferred stockholders, $0.45 per preferred stock.
2019:
$13,000* in dividends distributed to preferred stockholders, $0.65 per preferred stock.
$32,000 in dividends distributed to common stockholders, $0.084 per common stock.
Since preferred dividends are cumulative, if they are not paid off during a certain year, they will have to be paid in the future before any common dividends are distributed.
The specification for the weight of a box of cereal is 18.9 oz ± .2 oz. The actual mean and standard deviation from a sample of 200 boxes is 18.70 oz and 0.10 oz, respectively. What are the Cp and Cpk?
Answer:
Cp = 0.667, Cpk = 0
Explanation:
Given the following :
Specification = 18.9 oz ± .2 oz
Actual mean (m) = 18.70 oz
Standard deviation (sd) = 0.10 oz
Upper specification limit (USL) = (18.9 + 0.2) = 19.1 oz
Lower specification limit (LSL) = (18.9 - 0.2) = 18.7 oz
Cp formula :
(USL - LSL) / 6(sd)
(19.1 - 18.7) / 6(0.1)
Cp = 0.4 / 0.6 = 0.667
Cpk = min(CpU, CpL)
CpU = (USL - m) / 3(sd)
CpU = (19.1 - 18.7) / 3(0.1)
CpU = 0.4 / 0.3 = 1.333
CpL = (m - LSL) / 3(sd)
CpL = (18.7 - 18.7) / 3(0.1)
CpL = 0 / 0.3 = 0
Cpk = min(1.333, 0)
Minimum value is 0, hence Cpk = 0
Communication is essential for success in today's world for young professional who wants to appear literate, skillful, and effective A. Spoken B. Expert-Driven C. Written D. Charismatic
Answer:
Communication is essential for success in today's world for young professional is discussed below in full details.
Explanation:
Communication is an indispensable element of every individual and organization. Powerful communication is an indispensable element of organizational and Individual progress whether it is at the personal, intra-group, organizational, or external levels.
Bonding between people and their consists of the exchange of information and understanding between portion and people in an organization.
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.
Calculate the equivalent units of conversion.
A) 165,000
B) 130,250
C) 140,000
D) 144,000
E) 110,000
Answer:
B) 130,250
Explanation:
The computation of the equivalent units of conversion is shown below:
= Opening work in process units × remaining percentage + units started and completed units × completion percentage + ending work in process units × completion percentage
= 25,000 units × 45% + 110,000 × 100% + 30,000 × 30%
= 11,250 + 110,000 + 9,000
= 130,250 units
Hence, the correct option is B.
Given the bond described below, if interest were paid semi-annually (rather than annually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be:
Answer:
11.62%
Explanation:
The question was missing some parts:
Par Value $1000 Time to Maturity 20 years Coupon 10% paid annually Current Price $850 Yield to Maturity 12%
the approximate yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]
YTM = {50 + [(1,000 - 850) / 40]} / [(1,000 + 850) / 2] = 53.75 / 925 = 0.0581 x 2 (annual rate) = 0.1162 = 11.62%
Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contribution in the form of a loan to the company. Which of the following is true?
A) Brian can withdraw capital advances from the partnership
B) Jim and Brian can prevent Kirk from withdrawing advances from the partnership.
C) Kirk and Brian can prevent Jim from withdrawing advances from the partnership.
D) Jim can withdraw capital advances from the partnership.
Answer:
B)
Explanation:
In this specific scenario, the term that is true is that Jim and Brian can legally prevent Kirk from withdrawing advances from the partnership. This is because all three of them entered into a partnership with equal contributions meaning that they all own the same percentage of the company and must all agree on things before they are done. Even though Kirk provided an additional contribution, this was a loan which will be paid back eventually but does not give kirk any extra power in the company and must discuss decisions with Brian and Jim before it can be done.
If we assume that both countries specialize according to their comparative advantage, then how do we find a terms of trade that will cause both entities (i.e. individuals, countries) to be better off?
Answer:
The best way to find terms of trade that will ensure that two entities are in the best terms of trade will be to look at the opportunity costs of the various products they produce.
A high opportunity cost in one product relative to that of the other entity means the entity with the higher opportunity cost should be trading with the entity with the lower opportunity cost and vice versa.
For example, assume that an entity "A" produces both rice and beans whilst an entity "B" also produces rice and beans too.
If the opportunity cost to A of producing Beans is 300 bags of rice whilst the opportunity cost to B of producing Beans is 120 bags of rice, and the opportunity cost to A of producing rice is 180 bags of beans whilst it is 250 bags of beans to B, the principles of comparative advantage require that A should focus more on producing rice and purchase beans from B whilst B should focus more on producing beans and purchase rice from A.
Cheers!
Carla Vista Enterprises buys back 600,000 shares of its stock from investors at $6.50 a share. Two years later, it reissues this stock for $6.00 a share. The stock reissue would be recorded with a debit to Cash for:
Answer:
Debit to cash is $3,900,000
Explanation:
The journal entry for recording this given transaction is as follows
Cash Dr (600,000 shares × $6.50) $3,900,000
To Additional paid in capital (600,000 shares × $0.50) $300,000
To Treasury stock (600,000 shares × $6.00) $3,600,000
(Being the stock reissued for cash is recorded)
for recording this we debited the cash as it increased the assets and credited the treasury stock as it reduced the treasury stock balance and credited the additional paid in capital
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 7-year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return?
Answer:
25%
Explanation:
Accounting rate of return =( Net income from investment ÷ Cost of investment ) × 100
Net income from investment = $100,000
Cost of investment = $400,000
Required rate of return = ($100,000 / $400,000 ) × 100
= 0.25 × 100
= 25%
Prepare the company's trial balance at April 30,
2016 ,
listing accounts in proper sequence. For example, Accounts Receivable comes before Equipment. List the expense with the largest balance first, the expense with the next largest balance second, and so on.
Select the accounts that will be listed on the trial balance; enter the account balances and finally total the debits and
credits. Remember
to list the accounts in the proper
sequence ; assets first,
then
liabilities followed
by stockholders'
equity (including revenue and expense accounts). List the expenses last with the largest balance first, the expense with the next largest balance second, and so on.
Deluxe Pool Service, Inc.
Trial Balance
April 30, 2016
Account Debit Credit
Total
Account Balance
Dividends . . . . . . . . . . . . . . . $3,200
Common stock . . . . . . . . . . $16,500
Utilities expense . . . . . . . . . . . 1,500
Accounts payable . . . . . . . . . . 4,800
Accounts receivable . . . . . . . . 5,300
Service revenue . . . . . . . . . . 20,700
Delivery expense . . . . . . . . . . . .400
Equipment . . . . . . . . . . . . . . 29,200
Retained earnings . . . . . . . . . 1,500
Note payable . . . . . . . . . . . . 24,500
Salary expense . . . . . . . . . . . .9,000
Cash . . . . . . . . . . . . . . . . . . .19,400
Answer:
Deluxe Pool Service, Inc.
Trial Balance
April 30, 2016
Account Debit Credit
Cash . . . . . . . . . . . . . . . . . . . . $19,400
Accounts receivable . . . . . . . . 5,300
Equipment . . . . . . . . . . . . . . . 29,200
Accounts payable . . . . . . . . . . . . . . . . . . . . . $ 4,800
Note payable . . . . . . . . . . . . . . . . . . . . . . . . . 24,500
Common stock . . . . . . . . . . . . . . . . . . . . . . . . 16,500
Retained earnings . . . . . . . . . . . . . . . . . . . . . . .1,500
Service revenue . . . . . . . . . . . . . . . . . . . . . . 20,700
Salary expense . . . . . . . . . . . 9,000
Dividends . . . . . . . . . . . . . . . . 3,200
Utilities expense . . . . . . . . . . . 1,500
Delivery expense . . . . . . . . . . . 400
Total . . . . . . . . . . . . . . . . . . $68,000 $68,000
Explanation:
a) Data:
Deluxe Pool Service, Inc.
Trial Balance
April 30, 2016
Account Debit Credit
Total
Account Balance
Dividends . . . . . . . . . . . . . . . $3,200
Common stock . . . . . . . . . . $16,500
Utilities expense . . . . . . . . . . . 1,500
Accounts payable . . . . . . . . . . 4,800
Accounts receivable . . . . . . . . 5,300
Service revenue . . . . . . . . . . 20,700
Delivery expense . . . . . . . . . . . .400
Equipment . . . . . . . . . . . . . . 29,200
Retained earnings . . . . . . . . . 1,500
Note payable . . . . . . . . . . . . 24,500
Salary expense . . . . . . . . . . . .9,000
Cash . . . . . . . . . . . . . . . . . . .19,400
The risk-free rate of return is 4.2 percent and the market risk premium is 11 percent. What is the expected rate of return on a stock with a beta of 1.8
Answer:
r = 0.24 or 24%
Explanation:
The expected rate of return or the required rate of return is the minimum return that investors anticipate on a stock based on the systematic risk of that stock as measured by its beta. The CAPM equation can be used to calculate the expected rate of return on a stock. The formula is,
r = rRF + Beta * rpM
Where,
rRF is the risk free raterpM is the risk premium on marketr = 0.042 + 1.8 * 0.11
r = 0.24 or 24%
For a business, profit can be defined as
(a) the total cost of production and the scarcity of a product.
(b) the difference between scarcity and total revenues.
(c) the total revenues from buyers and stockholders.
(d) the difference between the total cost of production and the total revenues received from buyers.
Answer:
C
Explanation:
The total revenues from buyers and stock holders.
Often owners of firms who hire managers must install incentive or bonus plans to ensure that the:____.A. Company is financially secure.
B. Manager will work hard.
C. Manager will maintain employee morale.
D. Company will have positive economic profits.
Answer:
B
Explanation:
Incentives are given to managers for various reasons.
Some include :
to make the manager work hardto align the goals of the manager to that of the shareholdersThe forecasting technique that pools the opinions of a group of experts or managers is known as: market survey. management coefficients. the expert judgment model. multiple regression. jury of executive opinion.
Answer:
jury of executive opinion.
Explanation:
The forecasting technique that pools the opinions of a group of experts or managers is known as jury of executive opinion.
For example, when XYZ manufacturing company decides to conduct a series of strategic meetings for its forecasting by involving its key employees such as directors, analysts, managers etc to discuss (gathering opinions, ideas, perspectives and views) before reaching a forecasting consensus. This is simply a jury of executive opinion.
The following information is taken from Reagan Company's December 31 balance sheet:
Cash and cash equivalents $10,019
Accounts receivable 78,422
Merchandise inventories 68,362
Prepaid expenses 5700
Accounts payable $16,550
Notes payable 94,638
Other current liabilities 11,100
If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is:________. (Use 365 days a year.)
A. 159.4 days
B. 79.7 days
C. 41.3 days
D. 47.4 days
E. 69.5 days
Answer:the firm's days' sales uncollected for the year= 47.4 days---d
Explanation:
The Days’ Sales Uncollected, a liquidity ratio that gives an idea of average collection period which is an estimation for the number of days the amount receivables is expected to be collected.
it depends on the 1) Account receivables and 2) Net sales .
the formulae is given below as
Days sales uncollectible = Account receivables / Net Sales x 365
=( $78,422/$603,500) x 365 =0.12994 x 365= 47.4 days
A company has the following cost information: Units produced and sold 10,000 Direct materials $75,000 Direct labor hours per unit 1.0 Direct labor rate $10 per hour Variable manufacturing overhead 40% of direct labor Fixed manufacturing overhead $25,000 Variable selling and administrative expenses $6 per unit Fixed selling and administrative expenses $20,000 Calculate total period costs using full costing.
Answer:
The total period cost is $105000.
Explanation:
Total period costs (TPC) = Fixed manufacturing overhead (FMO) + (Variable selling and administrative expenses × units sold) + Fixed selling and administrative expenses.
Now insert all the values in the above formula.
Total period costs = $25,000 + ($6 × 10,000) + $20,000
Total period costs = $25,000 + $60,000 + $20,000
therefore, the Total period costs = $105,000
Oriole Company Purchased A Depreciable Asset For $837900 On January 1, 2018. The Estimated Salvage Value Is $81000, And The Estimated Total Useful Life is 9 years. The straight-line method is used for depreciation. In 2021, Oriole changed its estimates to a total useful life of 5 years with a salvage value of $143000. What is 2021 depreciation expense?
a. $252300
b. $584100
c. $139650
d. $221300
Answer:
D
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($837900 - $81000) / 9 = $84,100
Depreciation expense from 2018 to the end of 2020 would be $84,100
Accumulated depreciation as at 2020 = $252,300
Book value at the beginning of 2021 = $837, 900 - $252,300 = $585,600
remaining useful life as a result of the revision = 5 - 3 = 2
Depreciation expense under the new revisions =
($585,600 - $143000) / 2 = $221,300
Which of the following lags associated with fiscal policy are expected to be alleviated by automatic stabilizers such as unemployment benefits?
A. recognition lags
B. implementation lags
C. impact lags
D. Both A and B
E. Both B and C
F. Both A and C
Answer:
D. Both A and B
Explanation:
Recognition Lags in fiscal policy refers to the time lag a country has in clearly visiting the problems faced, when the policy is formed.
As for example the country government might not be able to recognise the problem of unemployment up to a certain identified amount. with automatic stabilisers the authorities can collect automatic data for this issue, and expected time lag will decrease and become minimal.
Implementation lag occurs when the authorities see the adversity of a problem in economy and implements a fiscal policy but it is not implemented in an effective manner, and the results are thus lagged.
Accordingly, automatic stabilisers will improve such time lag by providing the main areas of the country where the adversity of a problem is maximum.