In a private open economy with an equilibrium GDP level of $1000 billion and consumption at that level of GDP of $700 billion, I g + X n must equal $300 billion.
A system of interconnected production, consumption, and trade activities is called an economy, and it ultimately determines how resources are distributed among all of the players. To meet the requirements of persons residing in and participating in the economy, commodities and services are produced, consumed, and distributed.
Whether the entity is a country or a small town, all activities connected to the creation, consumption, and exchange of products and services are included in the definition of an economy.
A single economy is not like another. Each is shaped by the resources, culture, laws, history, and geography unique to it. Each changes based on the decisions and deeds of the individuals.
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Answer:
True.
Explanation:
ISO 9000 is a certification program attesting that a factory, laboratory, or office has met the rigorous requirements set by the International Organization for Standardization.
Basically, the ISO 9000 is a tripartite continuous process that involves planning, controlling and documentation of quality in a business firm or organization.
This ultimately implies that, the ISO 9000 is a set of standards that typically guides an organization in ensuring that they meet both the stakeholders and consumer requirements or needs with respect to their products and services under statutory and regulatory requirements at a specific period of time.
Answer:
Depreciation expense $2,000
To Accumulated depreciation - equipment $2,000
(Being the depreciation expense is recorded)
Explanation:
The journal entry is shown below:
Depreciation expense $2,000
To Accumulated depreciation - equipment $2,000
(Being the depreciation expense is recorded)
For recording this we debited the depreciation expense as it increased the expenses and credited the accumulated depreciation as it reduced the value of the fixed assets. This both items should be recorded for $2,000
Answer:
(a) $15
(b) $35
(c) 4
(d) $80
Explanation:
Given that,
Initial deposit = $20 bill
Required reserve ratio = 25%
(a) Money lend out by bank is as follows:
= Amount of deposit - Reserve requirement
= $20 - ($20 × 0.25)
= $20 - $5
= $15
(b) Money in the economy changed:
= Initial deposit + Amount of money lend out by bank
= $20 + $15
= $35
(c) Money multiplier:
= 1/ Required reserve ratio
= 1/ 0.25
= 4
(d) Money will eventually be created by the banking system:
= Change in deposits × Money multiplier
= $20 × 4
= $80
