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1 year ago

are shifts in aggregate demand often the result of waves of pessimism or optimism among consumers and businesses

1 answer:

ozzi1 year ago

4 0

Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.

<h3>What does aggregate demand represent?</h3>

Aggregate demand is the amount of total spending on domestic goods and services in an economy. The downward-sloping aggregate demand curve shows the relationship between the price level for outputs and the quantity of total spending in the economy.

Aggregate demand is calculated as the sum of consumer spending, investment spending, government spending, and the difference between exports and imports.

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Kim works for a clothing manufacturer as a dress designer. She travels to New York City to attend five days of fashion shows and

Anuta_ua [19.1K]

Answer and Explanation:

a. The computation of the amount deducted as if there is no reimbursement is

= Airfare charges + lodging for 5 days + meals for 5 days at 50% limit + full airport transportation

= $1,500 + $1,920 × 5 days ÷ 8 days + $1,440 × 5 days ÷ 8 days × 50% + $120

= $1,500 + $1,200 + $450 + $120

= $3,270

The unreimbursement travel expenses for an employee is 2% of adjusted gross income

b. The tax treatment in case of the independent contractor

= Airfare charges + lodging for 5 days + meals for 5 days at 50% limit + full airport transportation

= $1,500 + $1,920 × 5 days ÷ 8 days + $1,440 × 5 days ÷ 8 days × 50% + $120

= $1,500 + $1,200 + $450 + $120

= $3,270

It would remain the same in case of the independent contractor also.

3 0

2 years ago

Nick has a comprehensive health care policy with a $250 per-calendar-year deductible, an 80% co-insurance provision, and a $1,00

VikaD [51]

Answer:

Nick pay maximum $930

so correct option is d. $930

Explanation:

given data

health care policy = $250

co-insurance provision = 80 %

it mean claim to be paid by insurance company = 80%

and claim to be paid by Nick = 20 %

co payment cap = $1,000

claim insurance = $600

company paid = $280

total bills = $5,000

to find out

How much will Nick have to pay for the second claim

solution

we get first amount to be paid by insurance company and nick is

amount to be paid by insurance company and nick = $600 - $250

amount to be paid by insurance company and nick = $350

and

we know here 80% of $350 paid by insurance company

so paid by insurance company = 80% of $350 = $280

and paid by Nick = $350 - $280 = $70

so Limit available to co payment = $1000 - $70

Limit available to co payment = $930

so Nick pay maximum $930

so correct option is d. $930

5 0

2 years ago

Peter's Pencils is a perfectly competitive company producing pencils. Suppose Peter is producing 1,000 pencils an hour. If the t

kramer

Answer:

Peter is maximizing his profit and is making an economic profit.

Explanation:

Peter's Pencils is a pencil producing firm in a perfectly competitive firm.

It produces 1,000 pencils an hour.

The total cost of producing 1,000 pencils is $500.

The market price of each pencil is $2.

The marginal cost of producing the last unit of a pencil at this point is $2.

An individual firm in a perfectly competitive market faces a horizontal line demand curve which also represents the average revenue and marginal revenue.

This means that the marginal revenue earned from the 1,000th pencil is $2.

The marginal revenue is equal to marginal cost, this implies that the firm is maximizing profits.

The average total cost of the firm is

= $\frac{TC}{Q}$

= $\frac{500}{1,000}$

= $0.5

The average total cost is $0.5 which is lower than the price. This means that the firm is earning economic profits.

6 0

2 years ago

Sony has sold the same number of television sets each month for almost a year. However, in one month that number suddenly double

Inessa05 [86]

Answer:

C. Reduced prices of Sony televisions resulted in an increase in the quantity demanded.

Explanation:

Sony is a well known brand . What could explain a sudden double increase in sales while other brands' didn't is most likely a reduction in in prices of Sony products. It is a well known brand and they sell quality products which customers trust. Having a discounted price means they are offering a sale which customers would want to take advantage of.

3 0

2 years ago

The Federal Reserve would most likely adopt a contractionary monetary

sergey [27]

Answer:

A. The country has a high inflation rate and rapid economic growth.

Explanation:

A contractionary monetary policy aims at limiting the amount of money supply in the economy. Contractionary monetary policies discourage banks from lending out money to businesses and households. If firms and individuals have no easy access to credit, the level of investments and consumption declines, resulting in slower economic growth.

Contractionary monetary policies are also used to tame a high inflation rate. Inflation is the general increase in prices in the economy. It may arise due to a high economic growth rate. Because contractionary policies decrease the supply of money in the economy, less liquidity reduces the aggregate demand, thereby curbing increasing prices.

3 0

2 years ago

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