Answer:
Down
Explanation:
Benefits of economic growth
benefits-growth
Increased consumption. Firstly, higher GDP implies the economy is producing more goods and services and therefore consumers can enjoy more goods and services. If human welfare is linked to consumption then growth will benefit society. Higher levels of consumption will help to reduce any incidence of absolute poverty (when people can’t meet basic necessities of life.) This may not be so obvious for developed countries, like the UK and US, but for developing economies, economic growth and rising incomes play a big role in lifting people out of poverty.
Higher investment in public services. With higher GDP the government will be able to collect more taxes; this is because people as incomes rise and people spend more they will pay more income tax and VAT. This is beneficial because the government can use this increased revenues to reduce the level of government borrowing and/or spend more on public services and investment in the country infrastructure. This investment in public services can help improve the long-term performance of the economy. For example, better infrastructure enables a lower cost of trade. Therefore, growth can cause a virtuous cycle of higher investment leading to higher growth – which enables more investment.
Lower unemployment. Higher economic growth will also lead to an increase in demand for labour as firms will be producing more. Therefore unemployment will fall, this has various advantages such as lower government spending on benefits and less social problems. If the economy is in recession, then increasing the rate of economic growth will be an important step in reducing unemployment.
D7G7 unemployment
The rise in unemployment in 2008/09 was due to negative economic growth.
<span>A discount from the list, or retail, price offered to intermediaries is a
trade discount.
</span>
A trade
discount refers to the
amount by which a manufacturer or producer decreases the retail price of a
product when it sells to a re-seller, relatively to the end customer. It can
also define as a reduction to the available price of a product.
Answer:
$79,247
Explanation:
Installment includes the interest and principal as well to be paid on equal proportion. It need to be separated to report in the financial statement. Installment amortization is used to calculate the principal portion and interest portion of each years installment.
Installment Sale Schedule
Year Balance Payment Principal Interest
1 $947,700 $250,000 $155,230 $94,770 ( 947,700 x 10% )
2 $792,470 $250,000 $170,753 $79,247 ( 792,470 x 10% )
Interest of $79,247 should be included in Melton's 2015 income statement.
Answer: aggregate demand; left; lower; lower; higher
Explanation:
If the economy is initially in equilibrium at full employment real GDP (QN), and a stock market crash reduces household wealth and lowers investor confidence, ceteris paribus, the (aggregate demand) curve will shift to the (left) resulting in a (lower) price level (P), (lower) output/real GDP level (Q), and (higher) unemployment level (U).
It should be noted that the crash in the stock market will lead to lesser funds in the economy and lessee funds with households and this will lead to reduction in the demand for goods which will shift the demand curve to the left.
aggregate demand; left; lower; lower; higher
Answer:
The correct answer is D. taxes fall and shifts right if the money supply increases.
Explanation:
The aggregate demand curve has a negative slope in relation to prices, this means that keeping all other factors constant, in an economy when the price level drops, the quantity of goods and services demanded tends to increase.
If the income of the consumers grows, the demand will be increasing, which will cause the shift to the right of the demand curve since at the same price the quantity demanded will be greater.
Similarly, the curve will shift to the right if demand increases due to a positive change in tastes or fashion or because the prices of products that can replace it increase.