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DanielleElmas [232]
3 years ago
14

The economy is growing far too quickly, as high aggregate demand is causing inflation. a. What fiscal policy should be pursued i

n this instance? fiscal policy. b. What will be the effect of the appropriate policy on aggregate demand? Aggregate demand will shift to the _____ .
Business
1 answer:
nika2105 [10]3 years ago
6 0

Answer:

(a) Contractionary fiscal policy

(b) Aggregate shifts leftwards

Explanation:

Fiscal policy is a tool that is used by the government of a nation to control the fluctuations in the aggregate demand.

In this type of situation, government prefer to implement contractionary fiscal policy in the following form:

(1) Decreases government spending

(2) Increases taxes

When government increases taxes then as a result there is a fall in the consumer's disposable income. Therefore, the demand for the goods and services decreases in this economy and shifts the aggregate demand curve leftwards.

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Once the resources are identified the project manager should make sure that the identified resources are available

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What is the probability that the next student to purchase a meal plan will be assigned to the Commons?a. 0.33

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After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,500 price, but financing throu
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Answer:

a) Total Interest Paid in 24 months is $1680

b) Total Cost of the car is $12180

c) Monthly Payment is $420

d) Annual Percentage Rate  is 10.47%

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(a) Loan Amount = $8400

Interest Rate = 10%

Monthly Interest = 8400 x (10%/12)

                            = $70

Total Interest Paid in 24 months = 24 x 70

                                                     = $1680

(b) Total Cost of the car = Loan Amount + Interest Paid + Down payment

                                       = 8400 + 1680 + 2100

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(c) Monthly Principal Payment = 8400/24

                                                  = $350

Monthly Payment = Monthly Interest Payment + Monthly Principal Payment

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(d) Annual Percentage Rate = (1+ 0.10/12)12 - 1

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