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otez555 [7]
1 year ago
12

the primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.

Business
1 answer:
elixir [45]1 year ago
3 0

The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy. the price level is higher than expected making production more profitable. If aggregate demand shifts right, then eventually price level expectations rise.

The purpose is defined as planning or intending to do something. An example of purpose is a person who has decided to save his 10% of his income. object to reach. target; target; target. Desired Outcome; Intent.

Your life purpose is made up of your central motivational goal in life, the reason you wake up in the morning. Purpose can guide life choices, influence behavior, shape goals, provide direction, and create meaning. For some, the purpose is tied to vocation, meaningful and rewarding work. Think about it: A sense of purpose tends to increase optimism, resilience, and hope. Experience joy, happiness, and contentment more often. better physical health.

Learn more about  purpose here

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Suppose capital is readily substitutable for labor and that the price of capital falls. We can conclude that the :______________
Luda [366]

Answer:

Option C: substitution effect will tend to reduce the demand for labor

Explanation:

Capital is simply anything man made that is used in the production of goods and service. It is that which is used by man to start any business venture or produce goods and services e.g. money(currency),machinery, buildings, stock etc. Labor is mans effort put into work.

Since capital is readily substitutable for labor and when the price of capital falls. We can say that the substitution effect will tend to reduce the demand for labor. If also capital and labor are used in rigidly fixed proportions and the price of capital falls, it can be concluded the substitution and output effects will work.

6 0
3 years ago
Profit on sale of fixed assets is used to creat
Nadya [2.5K]

Answer:

profit and loss account

Explanation:

The turnover ratio of total working capital shows the success of working capital management. It is in fact a ratio that expresses how many times on average, during one year, working capital was used to pay the total expenses of the company.

A combination of data from the balance sheet and income statement is obtained, more specifically, it is the ratio of total business spread and average working capital of the company

4 0
2 years ago
Suppose that a local supermarket sells apples and oranges for 50 cents apiece, and at these prices is able to sell 100 apples an
dezoksy [38]

Answer:

e. price elasticities of demand for apples and oranges are the same over these price ranges

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Price elasticity = percentage change in quantity demanded / percentage change in price

Percentage change in price = (50-40) / 50 = 0.2 × 100 = 20%

Percentage change in quantity demanded of Apples = (120 - 100) / 100 = 0.2 × 100 =

20%

Percentage change in quantity demanded of oranges = (240 - 200) / 200 = 0.2 × 100 = 20%

Price elasticity of demand for oranges = 20% / 20% = 1

Price elasticity of demand for Apples = 20% / 20% = 1

When coefficient of elasticity is equal than one, elasticity of demand is unit elastic.

This implies that the elasticity of demand for Apples and oranges are the same. A change in the price of oranges and apples would lead to the same proportional change for each of the demand for Apples and oranges.

I hope my answer helps you

7 0
2 years ago
Anna worked for over an hour trying to set up her new phone by going online to access the manual. She finally gave up and used t
Marina CMI [18]
Aware or informed - knowledgeable accessible
3 0
2 years ago
Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the o
Ede4ka [16]

Solution :

We know that the exchange takes place when the FMV receive is equal to the FMV given up.

Where the FMV = fair market value

The commercial substance means the future cash flows exchange.

The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.

The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                           11,000

Accumulated depreciation(old)          9,000

Asset (old)                                                                       28,000

Cash                                                                                 2000

The journal entries for Delaware Corp. when the exchange lacks the commercial substance.

Transaction                                           Debit ($)                 Credit ($)

Asset(new)                                            16,000  

Accumulated depreciation (old)          10,000

Loss                                                                                      2500

Assets (old)                                                                           28,000                                  

7 0
2 years ago
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