Answer:
According to the classical theory of inflation, an increase in the money supply would cause aggregate demand curve to shift to the right. Output would increase and price level would increase. However, in the long run, would shift to the left. Output would reduce and the price level would continue to increase.
Explanation:
Inflation occurs in an economy when the overall price level increases and the demand of goods and services increases.
the classical theory of inflation explains how the aggregate price level gets determined through the interaction between money supply and money demand.
Tn the classical theory of inflation:
- Money is considered the asset which is utilized by people to purchase goods and services on a regular basis.
- Their view is that the general price is determined by the total demand for and total supply of goods just as the price of any good is determined by the forces of demand and supply for it.
- According to them inflation is a situation caused by excess demand, in which the total demand for goods as measured by the volume of money offered is in excess of supply of goods at prevailing prices.
The most appealing approach to diminish or take out the
effect of paying duties on sets imported to an organization's dispersion
distribution center in Europe-Africa is to raise the organization's offering
cost of footwear in Europe-Africa by everything of the tax and pass all tax
costs along to the buyers of the organization's footwear, this system has the
upside of totally taking out the organization's presentation to import taxes in
Europe-Africa.
Answer and Explanation:
According to the scenario, journal entry for the given data are as follows:
Cash A/c Dr. $1,000
Supplies A/c Dr. $3,000
Land A/c Dr. $8,000
Equipment A/c Dr. $5,000
To A/c Payable A/c $4,500
To Notes payable A/c $3,100
To M. Derr capital A/c $9,400 ($1000+$3000+$8000+$5000-$4500-$3100)
(Being Derr's investment is recorded)
This kind of problem is known as price escalation.
<u>Explanation:</u>
A divergence in estimating where merchandise have greater expenses in a remote market than in the local market because of transportation and sending out expenses is known as price escalation.
Price escalation can likewise allude to the total of cost factors in the circulation channels which mean a higher last expense for an item in a remote market.
Answer:
$131,000
Explanation:
Given that,
Stockholders’ equity at the beginning = $94,000
net income = $24,000
Dividends paid = $9,000
Common stock issued = $22,000
Stockholders' equity at the end:
= Stockholders Equity at the beginning + Net Income - Dividend + Common stock issued
= $94,000 + $24,000 - $9,000 + $22,000
= $131,000
Therefore, the total stockholders' equity at the end of the year is $131,000.