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1 year ago

Starting from a full-employment equilibrium, an increase in aggregate demand , and creates gap.

1 answer:

5 0

Starting from a full-employment equilibrium, an increase in aggregate demand increases, and creates an inflationary gap.

In an economy, the total quantity of demand for all finished goods and services is measured as aggregate demand. A measure of aggregate demand is the total amount of money spent on certain goods and services at a particular price level and period.

The entire demand for products and services at any given price level throughout a specific period is referred to as aggregate demand in macroeconomics. Since the two indicators are derived in the same way, aggregate demand over the long run equals gross domestic product (GDP). A country's gross domestic product (GDP) reflects all the products and services that are produced there, whereas aggregate demand refers to consumer demand for the same goods.

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Investment X offers to pay you $6,200 per year for nine years, whereas Investment Y offers to pay you $9,000 per year for five y

Ira Lisetskai [31]

Answer:

a)Present value [X] = $46,099.06

Present value[Y] = $40,066.40

b) Present value[X] = $30,667.51

Present value[Y] = $30,897.73

Explanation:

Present value of an ordinary annuity is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}$

where PMT = the value of the individual payments in each period

i = the interest rate that would be compounded in each compounding period

n = the number of payment periods

a) Present value of X given PMT = 6,200; i=0.04; n = 9 is calculated as follows:

Present value[X] = $6,200*\frac{[1-(1+0.04)^-^9]}{0.04}$ = $46,099.06

Present value of Y given PMT = 9,000; i=0.04; n = 5 is calculated as follows:

Present value[Y] = $9,000*\frac{[1-(1+0.04)^-^5]}{0.04}$ = $40,066.40

b) if the discount rate is 14% and all other variables do not change

Present value[X] = $6,200*\frac{[1-(1+0.14)^-^9]}{0.14}$ = $30,667.51

Present value[Y] = $9,000*\frac{[1-(1+0.14)^-^5]}{0.14}$ = $30,897.73

7 0

3 years ago

Trident Office is considering remodeling the office building it leases to Robert Roberts, CPA. The remodeling costs are estimate

mezya [45]

Answer:

$59,309

Explanation:

Years Cash flow PV Factor at 10% Present value of cash flows

0 225,000 1.00000 225,000

1 75,000 0.90909 68,182

2 75,000 0.82645 61,983

3 75,000 0.75131 56,349

4 75,000 0.68301 51,226

5 75,000 0.62092 <u>46,569</u>

Benefit of remodeling project <u>$59,309</u>

Note: Year 0 PV factor = 1/(1+10%)^0 = 1

4 0

3 years ago

Describe a real or made up but realistic situation in which you would want to use revolving credit. (2-4 sentences)

Artist 52 [7]

Answer:

don't know what is the answer sorry

very sorry

6 0

2 years ago

The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal p

Andrews [41]

Answer:

D. Replacement cost.

Explanation:

As we know that the inventory should be recorded at the cost or market value whichever is lower

Given that

Original cost is less than the net realizable value subtract the profit margin

So we assume the following figures

Original cost $10

Net realizable value 9

Replacement cost 8

NRV less normal profit margin 7

As if we compare the original cost and replacement cost so the lower value is of replacement cost

hence, the same is to be considered

Therefore the correct option is D.

4 0

2 years ago

Determinants of how long a firm should borrow money include?

mario62 [17]

Determinants of long a firm should borrow money include are:

⇒the seasonal environment of the business

⇒the cost of inventory

⇒the cash flow forecast

The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.

To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.

The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.

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4 0

1 year ago

Starting from a​ full-employment equilibrium, an increase in aggregate demand​ ______, and creates​ ______ gap.

Starting from a full-employment equilibrium, an increase in aggregate demand , and creates gap.