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2 years ago

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

1 answer:

ozzi2 years 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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Michigan Cranberry Company sold $10 million worth of cranberries it produced. In producing cranberries, it purchased $1 million

rusak2 [61]

Answer:

The answer is: $9 million

Explanation:

The gross domestic product includes all the final and legal goods and services produced in an economy during one year.

Michigan Cranberry produced $10 million worth of cranberries, but in doing so, it imported $1 million worth of supplies from other countries. Cross border labor is included in the GDP.

The net addition of Michigan Cranberries to the US GDP is: $10 million - $1 million (imported supplies) = $9 million

8 0

3 years ago

Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In

Alexandra [31]

Answer:

a. $720,000

Explanation:

Since in the question, it is given that the equipment is sold at the list price

The list price is $800,000 and the selling percentage is 90%

So, the revenue should be recorded

= List price × selling percentage

= $800,000 × 90%

= $720,000

Simply we multiplied the list with the selling percentage so that the correct amount can come

3 0

3 years ago

Last month, sellers of good Y took in $100 in total revenue on sales of 50 units of good Y. This month sellers of good Y raised

nekit [7.7K]

Answer:

Option c = They are Substitutes and have cross price elasticity of 1.67

Explanation:

Cross-Price Elasticity = %change in Quantity demanded of good X

%change in Price of good Y

% change in Quantity Demanded of good X = Q2-Q1 × 100

(Q1+Q2)

% change in Quantity Demanded of good X = 40-20 ×100

(20+40)

% change in Quantity Demanded of good X = 66.67%

% change in price of good Y = P2-P1 × 100

( P1+P2)

Last month Total Revenue = $100

Total Units = 50

Last month Price / unit = 100/50 = $2

This Total Revenue $120

Total units 40

This monthPrice / unit = 120/40 = $3

% change in price of good Y= 3 - 2 × 100

3+2

% change in price of good Y = 1 × 100

2.5

% change in price of good Y = 40%

Cross-Price Elasticity = 66.67

Cross- Price Elasticity = 1.67

Since its greater than 1 its Cross price elasticity of Substitute

also as the price of good y increased from $2 to $3 the quantity demanded of good x increased although its price remained constant which indicates its a substitute good as people preferred buying good x instead of good y

6 0

3 years ago

Lean production should result in reduced inventories. If lean production is successfully implemented, the difference in net oper

harina [27]

Answer:

True

Explanation:

If lean production totally eliminates inventories, the net operating income computed under the absorption and variable costing methods should be equal. If lean production only reduces inventories, then the difference in net operating income under the two methods will be reduced.

Lean production is a system of production that tries to eliminate bottlenecks in the flow of goods by employing tools like just in time (JIT), Kaizen, and the 5S of Sort, Set in Order, Shine, Standardize, and Sustain, among others. It attempts to cut costs, reduce unnecessary inventory, shorten production cycle, speed response time, grant employees autonomy, and reduce waste of resources while ensuring high quality and customer satisfaction.

Lean production employs some principles in order to achieve efficiency. They are: 1) definition of value, 2) mapping the value stream, 3) creating efficient flow, 4) using a pull system, and 5) pursuing perfection in all aspect of production activities. The Lean approach can be applied to services and other aspect of business, like system, structure, and organization.

3 0

3 years ago

Kayak is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the W

maria [59]

Answer: (D) Marketing channel or channel of distribution

Explanation:

The marketing channel is one of the type of organization that perform various types of activities for purpose of transmission of the products and the services from the manufacturer to the customer or the end user.

It is also known as the distribution channel and it include the various types of business strategies for promoting the product.

According to the given question, the Kayak is one of the type of organization that publicly allow their database for the purpose of searching the best deals for the hotels or airline.

Therefore, The kayak is one of the part of marketing channel or the channel of distribution.

7 0

3 years ago