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butalik [34]
3 years ago
6

Describe Classical Theory. To do so, begin by describing its approach to the circular flow model and indicate its assumption abo

ut employment and output in the economy. Close with a description of the aggregate demand curve, aggregate supply curve used to find equilibrium in this model.
Business
1 answer:
gogolik [260]3 years ago
8 0

Answer and Explanation:

Classical Theory:

Classical theory states that the economy is free flowing and that there should be no outside intervention. It states that the prices and wages move up and down freely. During good times the prices and wages tend to increase and during bad times or recession the prices and wages are adjusted accordingly to downwards.

Another vital information pertaining to classical theory is that it states: economy is always at full employment level of output. Which means that the aggregate supply curve is vertical and this implies that the increase in aggregate demand or a decrease in aggregate demand will lead to increase or decrease respectively. However, the output will remain same in the economy when it comes to the classical approach.

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The costs incurred before opening a business​
True [87]

The expenditure incurred prior to the incorporation of an enterprise is to be considered as a pre-incorporation capital expenditure. The expenditure incurred prior to the 'setting-up of business' is to be considered as a pre-operative capital expenditure.

8 0
3 years ago
If your purchases of shoes increase from 9 pairs per year to 11 pairs per year when your income increases from $19,000 to $21,00
fiasKO [112]

Answer:

Option (a) is correct.

Explanation:

Here, shoes are normal goods as there is a positive relationship between the income level of the consumer and the quantity demanded for shoes. It can be seen that as the income of the consumer increases from $19,000 to $21,000 then as a result the quantity of pairs of shoes demanded increases from 9 to 11 pairs. Normal goods are generally have positive income elasticity of demand.

Therefore, the shoes are normal goods in this case.

7 0
3 years ago
Fedor, Inc. has prepared the following direct materials purchases​ budget: Month Budgeted DM Purchases June $ 69 comma 000 July
cricket20 [7]

Answer:

C) $77,090

Explanation:

June 69000 (40% in July, 50% in AUgust)

July 80000 (40% in August, 50% in Sepetember)

August 77500 (40% in September, 50% in October)

September 77900 (40% in October)

October 71800 (10% in October)

Total budgeted cash payments in October = 71,800 x 10% + 77,900 x 40% + 77,500 x 50% = 77,090

6 0
3 years ago
The purpose of a sharps injury log is to help your employer _______________.
Alla [95]

The Log's aim is to aid in the evaluation of devices used in healthcare and other facilities, as well as to highlight issue devices or procedures that require more exposure attention or examination. At a minimum, the sharps injury log must include the kind and brand of device involved in the injury.

The department or work area where the exposure incident happened, and an account of how the incident occurred. keeping track of all needlestick injury, identifying causes of injuries, and preventing future incidences It must not be possible for blood or OPIM to get through to the skin, clothing, eyes, mouth, and so on. Needlesticks and wounds caused by infected sharps.

To learn more about injury, click here.

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3 0
2 years ago
The legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. This
V125BC [204]

Answer: indenture

Explanation:

The bond indenture is a legal contract that or covers a purchase obligation or a debt.

Therefore, the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond indenture. This document describes the number of bonds authorized, their par value, and the contract interest rate.

7 0
3 years ago
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