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2 years ago

If the government wants to expand aggregate demand, it can government purchases or taxes.

Business

1 answer:

Jobisdone [24]2 years ago

3 0

If the government wants to expand aggregate demand, it can "rebate" government purchases or "cut" taxes.

<h3>What is aggregate demand?</h3>

The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.

Some characteristics of aggregate demand are-

The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.
The correlation between output and all prices can be seen on an aggregate demand curve.
In the end, the aggregate demand curve slopes downward because it predicts a fall in real gross domestic product (GDP) as prices rise.
Consumer spending, investment spending, government spending, and the difference between exports and imports are all added together to determine aggregate demand.
When one of these variables changes but the overall supply stays unchanged, aggregate demand will alter.

To know more about the aggregate demand and aggregate supply model, here

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3 years ago

Read 2 more answers

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the follo

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Answer:

Rustafson Corporation

1. Computation of the activity rate for each activity cost pool:

Activity Cost Pool Activity Rate

Labor-related $6.50 per DLH

Machine-related $0.25 per MH

Machine setups $42 per setup

Production orders $36 per order

Product testing $24 per test

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= $358,800/8,000

= $44.85

Explanation:

a) Data and Calculations:

Estimated Overhead Cost Expected Activity Activity Rate

Labor-related $ 52,000 8,000 direct labor-hours $6.50 (52,000/8,000)

Machine-related $ 15,000 20,000 machine-hours $0.25 ($15,000/20,000)

Machine setups $ 42,000 1,000 setups $42 ($42,000/1,000)

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3 years ago

An investor wishes to invest equal amounts in three stocks and to achieve a portfolio beta of 1.2. If stock A has a beta of 0.9

photoshop1234 [79]

Answer:

Beta of Stock C is 1.6

correct option is d. 1.6

Explanation:

given data

portfolio beta = 1.2

stock A beta = 0.9

stock B beta = 1.1

to find out

beta of stock C

solution

we will apply here Portfolio Beta equation that is express as

Portfolio Beta = ( Weight of Stock A × Beta of Stock A ) + ( Weight of Stock B × Beta of Stock B ) + ( Weight of Stock C × Beta of Stock C ) ......................1

here weight for each stock = $\frac{1}{3}$

put here value we will get

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solve it we will get

Beta of Stock C = 1.599

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3 years ago

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3 years ago

If the government wants to expand aggregate demand, it can ________ government purchases or ________ taxes.

If the government wants to expand aggregate demand, it can government purchases or taxes.