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1 year ago

increases in government spending are not very effective in offsetting real shocks because they shift the:

1 answer:

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Increases in government spending are not very effective in offsetting real shocks because they shift the aggregate demand.

<h2>Definition of Aggregate Demand</h2>

Aggregate demand is the value of all requests for all types of goods and services produced in a certain period. The demand value contained in this aggregate will be expressed in terms of the overall value used for these goods and services up to a more specific price level and at a certain time period.

Some things that include aggregate demand are all consumer goods, capital goods used for the production process, import-export activities, and state government spending programs. Each of these variables will be considered the same as long as they are traded at the same market value.

This aggregate demand can also be calculated over a long period of time, which is often referred to as GDP or Gross Domestic demand. If this GDP will describe the total value and also the goods produced, then aggregate demand will represent the desire for goods and services.

Learn more about aggregate demand at brainly.com/question/29349235.

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2 years ago

At December 31, 2020, Pharoah Company has outstanding three long-term debt issues. The first is a $2,370,000 note payable which

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The first is a $2,370,000 note payable which matures June 30, 2023.

The second is a $5,580,000 bond issue which matures September 30, 2024.

annual sinking fund payments of $2,570,000 in each of the years 2022 through 2026.

Year Amount of long term debt Working

2021 $0

2022 $2,570,000

2023 $4,940,000 = $2,570,000 + $2,370,000

2024 $8,150,000 = $,2,570,000 + $5,580,000

2025 $2,570,000

2026 $2,570,000

Long term debt is debt that must be paid in a period of time longer than one year. Debts that are due in less than one year are classified as current debts or liabilities. That is why there is no long term debt for 2021 (current year).

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