Answer:
<em>A. True</em>
Explanation:
<em>Aggregate demand</em> refers to the desire and the will to purchase a specified quantity of all the final goods and services produced in a country at a specific price level at different points of time.
An<em> aggregate demand curve is downward sloping</em>, implying increasing demand at lower price levels and decreasing demand at higher price levels.
<em>Aggregate demand = Consumption (C) + Investment (I) + Government Expenditure (G) + Net Exports (NX) = GDP at market price</em>
C represents the consumption goods demand by individuals and households.
I represents the private corporate spending on investments in fixed capital assets like plant and machinery and equipments etc.
G represents the government expenditure for the people like on building parks and dams etc and social assistance programmes.
NX represents the exports minus imports.
Hence, we can see that Aggregate Demand accounts for the measure of all the final goods and services produced domestically in a country and <em>thus is the sum of all demand curves of all goods and services in the economy. </em>
Answer:
As a result, real GDP per capita <u>WILL INCREASE</u> because real GDP rose <u>MORE</u> than the population.
Explanation:
increase in real GDP = $106 - $101 = $5 billion, or 4.95%
population increase = 51 - 50 = 1 million people, or 2%
real GDP per capita 2010 = $101,000 / 50 = $2,020
real GDP per capita 2011 = $106,000 / 51 = $2,078
since the real GDP increased by almost 5%, while the population increased only by 2%, the real GDP per capita will increase by 2.9%
Answer:
Entry for depreciation recognition:
Dr Depreciation Expense $2750
Cr Accumulated Depreciation $2750
Explanation:
Now we will add depreciation expense to the total expense which shows an increase in expenses. Likewise the accumulated depreciation will also be increased by $2750 which means it must be added to accumulated depreciated and entered as increase in the box with a positive sign.
Answer:
gives buyers an incentive to buy less of the good than they otherwise would buy
Explanation:
The tax on the product means that it provided the inventive to the buyer in the case when the buyer purchase less of the product as compared when they purchase in other way
So according to the given situation, the tax on a good fits to the first option only
Therefore only first option is correct
Hence, the other options seems incorrect
Answer:
grow by 5 percent
Explanation:
The quantitative theory of money (QTM) states that MV=PT (M=money supply, V=money velocity, P=price level, T=number of transactions). But normally we fin it like this: MV=PY, because the cuantitative equation assumes that the value of transactions is equal to the GDP (Y).
We want to find the equation above in terms of rate of change because the problem says money supply "grows" velocity"grows" and GDP "grows", which means we have minimum two periods of time. So, the transformed equation is: ΔM+ΔV=ΔP+ΔY.
The problem is asking for the ΔP:
ΔP=ΔM+ΔV-ΔY
ΔP= 5%+2%-2%
ΔP= 5% (It is positive, then it is growing)