The increased pessimism will affect the aggregate demand curve by: shifting the aggregate demand curve to the left.
<h3>What is Aggregate Demand Curve?</h3>
An aggregate demand curve can be described as curve that shows the total spending that is made on domestic goods and services based on different price levels.
When the aggregate demand curve shifts to the right, it means demand is increased. However, wen aggregate demand curve shifts to the left, it means demand decrease.
Recession that happened in 2007-2009 that made many consumers pessimistic about their future incomes discourages buying. This leads to a decrease in demand which will make the aggregate demand curve to shift to the left.
Therefore, the increased pessimism will affect the aggregate demand curve by: shifting the aggregate demand curve to the left.
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In dealing with the Federal reserve, the key responsibilities of the Fed are lending money to the government and formulating monetary policies.
The federal reserve of the United states is what acts as the central bank of the country. The Feds helps to
- Regulate the money supply that is in the country
- Regulate the operations of banks
- Establish monetary policies.
The board of governors in the banks help to study the current issues that are existent in the economy, then they formulate the adequate policies that would help to take care of the issues.
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The equity cost of capital for the Jumbuck Exploration is 22%
Explanation:
Equity cost refers to the return offered to the customers in place of their investment in the organisation stocks. It is calculated by the formula
Rₐ = (D₁/P₀)+g
Where Rₐ= cost of equity
D₁= dividends announced
P₀=share price (current)
g= growth rate
Now given details-
Dividend announced (D₁)- $ 0.26
Current market price (P₀) - $ 2.00
Expected price= $ 2.10
growth rate= expected price- current price
growth rate (g) =$ 0.10
Putting the values to find Rₐ
Rₐ=(0.26/2.00)+0.10
Rₐ=0.23 or 23%
Nearest answer is 22%
Hence the equity cost of the capital is 22%
Correct answers: Country B will eventually have a higher real GDP than country A if the economy of each county continues to grow this way.
Incorrect answers: Country A has a high real GDP. Country A has a modestly high quality of life. Country A’s economy has been in a period of contraction. Country B has a very high quality of life. #Smokeweedeveryday
The significance of wrongful discharge suits is that they challenge an employer's right under the employment-at-will doctrine to unilaterally discharge employees. The given statement is true.
People who labor for others and receive compensation are said to be employed. Employees are those who work for another person, and employers hire these individuals. Any individual earning a salary while working for another person, such as an accountant, sales manager, or peon, for instance.
In most cases, the term "employment" refers to the condition of having a paid job—of being employed. A person is paid to work when they are employed. Employees are employed by an employer. As in We're working to increase our employment of women., the term "employment" can also refer to the act of employing people.
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