The economy is hit with a positive oil price shock in one period that raises the level of oil prices permanently. if adaptive expectations hold, this wil shift the AS curve up initially and then shift the AS curve back to original position in the following period.
<h3>What is the AS curve?</h3>
The aggregate supply curve describes the amount of real GDP that the economy supplies at different price levels. The reasoning used to construct the aggregate supply curve is different from the reasoning used to construct the supply curves of individual goods and services. The supply curve for a single good is constructed under the assumption that the prices of production inputs remain unchanged. If the price of good X rises, the unit cost for sellers to supply good X does not change, so sellers are willing to supply more of good X - so the supply curve for good X shifts upward. However, the aggregate supply curve is determined based on the price level. An increase in the price level increases the price producers receive for their output and thus increases production.
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Answer:At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $831,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $416 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. View transaction list 1 Record the estimated bad debts expense. 2 Wrote off P. Park's account as uncollectible. 3 Reinstated Park's previously written off account 4 Record the cash received on account. Credit Note :· journal entry has been entered Record entry Clear entry View general journal
Answer:
a. expectancy theory
Explanation:
Expectancy theory -
According to this theory , a person will behave in a specific way depending on the individual's choice , is referred to as the expectancy theory .
It is also known as the expectancy theory of motivation .
Various factors make the person to select some specific behavior over others like outcome , strength , intelligence etc.
Hence , from the given scenario of the question ,
The correct answer is expectancy theory .
Answer:
What decision are you trying to make using that information?
Explanation:
By knowing the answer to the question, the researcher could designed their research to provide the most relevant data specifically for that purpose.
<u>for example,</u>
let's say that the purpose of the research is to find out which advertising strategies work the best.
The researcher could specifically separate the date and divided the market shares based on different periods. Each different periods are made represent different advertising strategies.
This would provide frank with the information regarding which strategies cause the most increases in market shares.
Answer:
Concord Corporation has outstanding accounts receivable totaling $1.29 million as of December 31 and sales on credit during the year of $6.30 million. There is also a debit balance of $6100 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense will be $25800 - option B.
Explanation:
Estimated uncollectible = 2% of account receivables
Allowance account’s adjusted balance must be the same as estimated uncollectible balance.
Therefore, the adjusted Allowance for Doubtful Account = $1.29 millions x 2%
= $1.29*0.02
The adjusted Allowance for Doubtful Account = $ 0.0258 millions or $ 25,800.
Therefore, the correct answer is $ 25,800 - option B.
