True or false: keynes' law best applies to short time horizons that see fluctuations in total demand.

1 answer:

5 0

It is a true statement that the Keynes law best applies to short time horizons which see fluctuations in total demand.

<h3>What is the Keynes law?</h3>

The Keynesian economic model is developed to adovate an increased government expenditures (spending) and lowering of taxes for stimulation of demand for getting an economy out of the depression.

The law of Keynesian model states that demand creates its own supply and any changes in aggregate demand will cause changes in real GDP and employment.

In conclusion, the statement that Keynes law best applies to short time horizons which see fluctuations in total demand is true.

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Assume the following information: Selling price per unit $200 Contribution margin ratio 50% Total fixed costs $275,000 How many

svetoff [14.1K]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price per unit $200

Contribution margin ratio 50%

Total fixed costs $275,000

Desired profit= $50,000

First, we need to calculate the sales required to obtain the desired profit:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (275,000 + 50,000) / 0.5

Break-even point (dollars)= $650,000

Now, the number of units:

Number of units= 650,000 / 200= 3,250

Or, you can use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (275,000 + 50,000) / (0.5*200)

Break-even point in units= 3,250

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3 years ago

Which of the following is not an example of safeguarding inventory? a.storing inventory in restricted areas b.returning inventor

Katen [24]

Answer: Option B

Explanation: Safeguarding inventory refers to keeping proper records of inventory and protecting it from any kind of damage that may result in loss to the organisation.

The main objective behind safeguarding inventory is to minimize loss of the organisation that is keeping it.

In the given case, second option is the purchase return and it could not be considered a default of the purchaser of inventory.

Hence from the above we can conclude that the correct option is B.

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3 years ago

Professor Very Busy needs to allocate time next week to include time for office hours. He needs to forecast the number of studen

Serhud [2]

Answer:

b. 77

Explanation:

The formula for forecasting is :

$F_{t}$ = $\alpha D_{t-1}$ + (1 - $\alpha$ ) $F_{t-1}$