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Y_Kistochka [10]
1 year ago
11

suppose that aggregate demand is falling for several months in a row. describe how the economy will adjust in the long run.

Business
1 answer:
Salsk061 [2.6K]1 year ago
4 0

If aggregate demand in the long run is falling for several months in a row, it will make aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.

Aggregate demand can be described as a measurement of the total amount of demand for all finished services and goods produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those services and goods at a specific point in time and price level.

The model of aggregate demand and long-run aggregate supply predicts that the economy will eventually move toward its potential output. To see how nominal wage and price stickiness can cause real GDP to be either above or below potential in the short run, consider the response of the economy to a change in aggregate demand.

Learn more about aggregate demand in the link brainly.com/question/14375684

#SPJ4

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Jennifer Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activ
olya-2409 [2.1K]

Answer:

B) = $38.44

Explanation:

<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>

Activity rate is calculated as:

<em>Activity cost for the period / Total cost drivers for the period</em>

<u><em>Activity rate for supporting customers:</em></u>

<em>The appropriate cost driver to allocate supporting customer activity is the number of customers as given.  This is so because it is most likely that the number of customers served will be a major factor that influences the supporting customers activity costs. </em>

<u><em>Activity rate for supporting customers </em></u>

= Supporting customers overhead/total number of customers

= $34,600/(600+300)

= $38.44

5 0
3 years ago
Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard
AlexFokin [52]

Answer:

Labor Rate Variance = - $1,188 Unfavorable

Explanation:

Provided labor hours for each radio = 0.9

Standard labor cost per hour = $7.20

Actual labor cost = $48,708

Actual labor hours = 6,600

Actual labor rate = $48,708/6,600 = $7.38

Labor Rate Variance = (Standard Rate - Actual Rate) \times Actual Hours

= ($7.20 - $7.38) \times 6,600 =<em><u> - $1,188 Unfavorable</u></em>

6 0
3 years ago
Distinguish between corporate image and reputation​
My name is Ann [436]
Corporate image is more about how a brand makes people feel, while reputation includes people’s perceptions of a company’s products, leadership, finances, social responsibility, and interactions with its costumers, employees, and community. Both corporate image and reputation can impact a company’s revenue and success.
7 0
2 years ago
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $4
Alexeev081 [22]

Solution :

1. The break even sales in units is given by :

   Break even sales in units = $\frac{\text{fixed cost}}{\text{contribution per unit}}$

Where, contribution per unit = selling price per unit - variable cost per unit

The anticipated break even sales in units of Cleaves company in the coming year is :

Break even sales in units = $\frac{480,000}{40}$

Contribution per unit = $ 100 - $ 60

                                   = $ 40

So the company anticipates its breakeven sales at 12,000 units.

2. In order tot earn profit the sales generated should overcome the breakeven point. The desired profit is $240,000, the sales required to earn the desired profit can be computed using the formula :

Desired sales in units = $\frac{\text{fixed cost + desired cost}}{\text{contribution per unit}}$

                                    $=\frac{480,000+240,000}{40}$

                                    = 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

3. The sales in excess of the breakeven point would yield a profit on the contrary the sales below the breakeven point would result in a loss.

In the given sales in dollar =  breakeven sales in units x selling price per unit

                                           = 12,000 x 100

                                           = $ 1,200,000

∴ the sales above $1,200,000 would result in a profit whereas the sales below $1,200,000 would result in loss.

The cost volume profit chart below indicates the profit, loss, breakeven at different sales levels :

Sales levels           Result

1,200,000          Breakeven

1,000,000           Loss

800,000             Loss

400,000             Loss

200,000            Loss

4. The income on sale of 16,000 units is computed below :

Particulars                        Amount is $

Sales                                 1,600,000

Less : variable cost           960,000

Contribution                      640,000

Less : Fixed cost               480,000

Profit                                  160,000

8 0
3 years ago
Huron Investments issues $1 million in 13.250% bonds maturing August 11, 2028. The bond is callable August 11, 2023 at a call pr
Whitepunk [10]

Answer:

Huron Investments issues $1 million in 13.250% bonds maturing August 11, 2028. The bond is callable August 11, 2023 at a call premium of 2.500%. August 11, 2023 the prevailing yield is 5.250%. If Huron Investments calls the entire issue and replaces it with 5.250% bonds also maturing August 11, 2028 then each semi-annual coupon payment will decrease by <u>$125,000</u>

Explanation:

Change in semi-annual coupon = (13% - 6.75%) x 4m / 2 = $125,000

6 0
3 years ago
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