Steve Is an Employee of Panache,Inc

question 142

True/False

Steve is an employee of Panache,Inc.Panache pays a portion of his health insurance premium and also contributes to a retirement plan in his name.The company's share of the health insurance premium is $660,and the company's contribution to the retirement plan is $820.The journal entry to record the employee benefits to be paid by the company should include a debit to Employee Health Insurance Payable for $1,480.

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Definitions:

Crowding-Out Effect

A situation where increased government spending leads to reduced investment in the private sector, typically because of higher interest rates or the use of available financial resources.

Keynesians

Economists who follow the theories of John Maynard Keynes, emphasizing the role of government intervention and fiscal policy in managing economic cycles.

Monetarists

Economists who suggest that fluctuations in the money supply are key in affecting national output in the short term and in determining the price level over an extended term.

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates or other factors.