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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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The amount of cash received on January 24 is $3332

Explanation:

The amount of cash received will be for the net amount of receivable after adjusting for sales returns and the sales discount as the payment is received within the discount period of 10 days as stated by the term 2/10 which means a 2% discount if payment is received within 10 days of sale.

The accounts receivable at January 15 after sale were $4500. Out of this amount, $1100 of returns are made. Thus, the remaining balance of accounts receivables after return is $4500 - $1100 = $3400

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6 0
3 years ago
Everybody should leave this app and go to question cove. You do not need any points to ask questions and you get correct answers
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Answer:

thz fo the points

Explanation:

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the correct answer

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