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Simora [160]
3 years ago
6

When stock prices declined during the great recession, it caused aggregate demand to decrease because?

Business
1 answer:
rodikova [14]3 years ago
7 0
<span>During the recession, the prices of the shares decrease and cause the decrease of aggregate demand because there are alterations in the economy of the consumers and in the policies of production and prices of the companies and producers. The change in the distribution of income within the economy when the wages and salaries of consumers rise there is an impact on the economy that produces unemployment or reduction of wages due to a recession and the demand for products is significantly reduced.</span>
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Answer:

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Explanation:

<em>We are not given with any information of additional cost or special price for this units, so we use the current values.</em>

So we simply multiply the contribution per unit by the increase in sale.

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Each unit contributes with 13 additional income, there are 90 additional units

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Answer:

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The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

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3 years ago
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A: "Past information can get in the way of learning new things."

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