First if all remember that the flexible policy was created as an strategy to calls for a reaction <span>that can be easily modified to respond to war circumstances. This means the government is giving more power to the arms race because this strategy is not only limited to enhance nuclear arms but any weapon. Of course that budget is not going to be used for many other rograms as agriculture or health which are also important. </span>
Answer: Check attachment
Explanation:
A cash basis income statement is simply referred to as an income statement which contains revenues and expenditures for the company whereby cash has either being received or paid by the company.
For accrual basis income statement, revenue and expenditures are recorded when they're either earned or made.
Check the attachment for more analysis.
A would be the correct answer
Answer: Disruptive innovation
Explanation: Disruptive innovation is an application of nicer finding that relay new conditions and demand at operation at current time that establishes a new demand and graphical diagram of civil and specialized aids inside and between companies and how they are effectively and practically used. Ultimately, it interrupts an existing demand and value network, taking over conventional demand-dominating companies, commodities, and unions.
Answer:
a. Increase in Net Exports, Increase in AD, real GDP will stay same
b. Excess Demand
c. Appropriate Contractionary Fiscal Policy : decrease tax & or increase government expenditure
d. Actions smooth business cycle by brining actual real GDP towards full employment
Explanation:
Aggregate Demand is the total value of goods & services all the sectors of an economy are planning to buy during a given period of time
Aggregate Demand [AD] = Consumption [C] + Investment [I] + Government Expenditure [G] + Net Exports [NX = Exports (X) - Imports (M)]
Aggregate Demand > Aggregate Supply at full employment level is Excess Demand. Aggregate Demand < Aggregate Supply at full employment level is Deficit Demand
Decrease in Investment leads to fall in Aggregate Demand. It creates Deficit Demand & decreases real GDP. It can be corrected through demand expansionary fiscal policy of decreasing taxes & increasing govt. expenditure.
Increase in exports leads to increase in net exports & in turn increase in aggregate demand. This causes Excess demand problem & real GDP will remain same (economy already at full equilibrium, GDP cant be increased more). Appropriate Fiscal Policy [Contractionary Fiscal Policy] includes decreasing taxes & or increasing govt. purchase.
These actions will smooth out business cycle by bringing actual real GDP back to full employment level.
