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1 year ago

Ad both raise prices and reduce output.

1 answer:

6 0

The following statement "The government has a harder time counteracting leftward shifts in AS than in AD because shifts in AS both raise prices and reduce output" is true.

The main problem is that leftward shifts in AS both raise prices and reduce output. Standard policies can only cure one of these two problems at a time. If the government raises spending or cuts taxes, output can be restored, but at the cost of even more upward pressure on prices. If the government cuts spending or raises taxes, prices can be restored to their previous levels, but output falls even further.

Which of the following statements is true?

The government has a harder time counteracting leftward shifts in AS than in AD because shifts in AS both raise prices and reduce output.

The government has a harder time counteracting leftward shifts in AD than in AS because shifts in AD both raise prices and reduce output.

The government has a harder time counteracting leftward shifts in AS than in AD because shifts in AS raise prices and output.

The government has a harder time counteracting leftward shifts in AD than in AS because shifts in AD raise prices and output.

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Tops Co. purchases equipment for $12,000 and has been using straight-line depreciation, estimating a 5-year life and $500 salvag

lisov135 [29]

Answer:

According to the straight-line depreciation, this number can be obtained by dividing the difference between an asset's cost and its expected salvage value.

<u>Depreciation</u> = Asset's Cost - Expected Salvage Value ÷ Expected Years of use

Explanation:

In the case of Tops Co., they purchase equipment for $12,000 - $500 of Salvage Value expected ÷ 5 Expected years of use

The estimated depreciation will be $2,300 for 5 years

At the beginning of the third year Tops Co. decided to use the equipment for 6 years and no salvage value.

The remaining purchase value will be $12,000 - $2,300 (x3) = $5,100

Apply again the formula described above and our answer will be:

The revised estimated depreciation is $1,700 for the remaining three years.

4 0

3 years ago

Read 2 more answers

In may, the price of a pair of jeans was 250% of its wholesale cost. in june, the price was reduced by 25%. after an additional

Lorico [155]

We have to go backwards:
After the discount in July ( 50 % ), the cost of jeans is $25.50
So the price before this discount was 2 * $22.50 = $45
In June, the price was reduced by 25%.
45 ------------------75%
x --------------------100 %
45 : x = 75 : 100
45 * 100 = 75 x
4,500 = 75 x
x = 4,500 : 75
x = $60
Finally, in May the price was 250% of its wholesale cost.
60 ----------------- 250%
x -------------------100 %
60 : x = 250 : 100
6,000 = 250x
x = 6,000 : 250
x = $24
Answer: The cost of the jeans in the wholesale was $24.

4 0

3 years ago

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Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a

statuscvo [17]

Answer: (a) CM ratio = 40, break even point in balls = 21,000 balls (b ) degree of operating leverage = 3

Explanation:

(a) To calculate the CM ratio , we use the formula

Selling price - variable expenses / selling price

Selling price = $25, variable expenses = $15

= (25 - 15 )/ 25

= 10 / 25

= 0.4 × 100

= 40

To calculate the break -even points in balls, we use the formula

Break even point = fixed cost / contribution per unit

Fixed cost = $210,000, Contribution per unit = (25 -15) = 10

210,000 / 10

= 21,000 balls

(b) To calculate the degree of operating leverage last year, we use the formula

Contribution margin / net income

Contribution margin =$300,000, net income = 90,000

= 300,000 / 90,000

= 3.33

= 3

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3 years ago

All of the following are sources of grant funding except

ANTONII [103]

Answer:

b. the ncaa clearinghouse

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3 years ago

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The price of tickets for a Rolling Stones concert is $50. At that price, tickets sell out almost immediately. After tickets sell

lozanna [386]

Answer:

c. the market equilibrium price of tickets to the concert exceeds $50

Explanation:

Markets are at equilibrium when Market Demand = Market Supply and downward sloping demand curve, upward sloping supply curves intersect.

As mentioned : At Price = $50, demand of the product still exists after market clearing. This implies there is case of Excess Demand at prevalent price. This case happens when actual price < equilibrium price , because demand is more & supply less at lower prices

So: Actual price $50 is less than the market equilibrium price (which should be rather higher), equalising market demand & market supply - which should be rather higher.

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4 years ago