1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jarptica [38.1K]
3 years ago
5

Other things the same, when the government spends more, the initial effect is that a. aggregate demand shifts right. b. aggregat

e demand shifts left. c. aggregate supply shifts right. d. aggregate supply shifts left.
Business
1 answer:
tatyana61 [14]3 years ago
4 0

Answer: Option (a) is correct.

Explanation:

Correct option: Aggregate demand shifts right.

Aggregate demand = consumption + government spending + Investment + Net Exports

Other things remains constant, if there is an increase in the government spending, as a result aggregate demand curve shifts rightwards. This will lead to increase the price level and level of output.

You might be interested in
Which best describes what injector factors bring to an economic system?
Mrac [35]

Answer: Money

Explanation:

Money is one of the injector factor that is necessary for bringing the economic system. The injection of money helps in boosting economy of any country or region. This also helps in investment, strengthening the government to take necessary measures for development, and export.  Money can be used to purchase raw materials to produce more number of goods and it enables the customers to purchase those goods and services. This exerts a positive impact on the circulation of economy.

6 0
2 years ago
Read 2 more answers
Why net profit will be higher if increases average prices to customers?​
vampirchik [111]

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

6 0
3 years ago
Sally purchased a log-splitter five years ago. This year, she purchases some new parts, gasoline, oil, and spends 2 hours repair
kompoz [17]

Answer:

C

Explanation:

The GDP or gross domestic product measures the market value of all goods and services produced in country in a specific period of time. This year GDP should not include the log-splitter because Sally purchased it five years ago. We should include this year purchases: new parts, gasoline, oil. Also, we should include the market value of the 2 hours she spent repairing the log-splitter if she paid someone to do it or if someone paid her to do it, because this is a service. But the problem suggests that she repaired her own log-splitter, then we should not include it this year GDP.  

6 0
3 years ago
At the beginning of 2018, Midway Hardware has an inventory of $310,000. Because sales growth was strong during 2018, the owner w
nalin [4]

Answer:

$1,625,000

Explanation:

For computing the purchase amount first we have to determine the cost of goods sold which is shown below;

As we know that

Cost of goods sold = Sales revenue - gross profit

                               = $2,100,000 - $2,100,000 × 25%

                               = $2,100,000 - $525,000

                               = $1,575,000

Now the purchase amount is

Cost of goods sold = Beginning inventory + purchase - ending inventory

$1,575,000 = $310,000 + purchase - $360,000

So, the purchase amount is $1,625,000

4 0
2 years ago
For most careers, which degree will likely result in the highest lifetime earnings
oksian1 [2.3K]
A Masters Degree Because with that you can get any job you want
6 0
3 years ago
Read 2 more answers
Other questions:
  • Why is a relentless workaholic quickly overwhelmed?
    15·1 answer
  • On July 1, Shady Creek Resort borrowed $340,000 cash by signing a 10-year, 9% installment note requiring equal payments each Jun
    14·1 answer
  • The App Store needs to raise $2.8 million for expansion. The firm wants to raise this money by selling 20-year, zero-coupon bond
    7·1 answer
  • The components of global market assessment include all of the following except:______. a. ethnic analysis. b. infrastructure and
    8·1 answer
  • 9) Given the following information, compute the total number of units for the period: Direct labor hours 12,000 Direct labor cos
    6·1 answer
  • The partners in the biz partnership have agreed that partner mandy may sell her $100,000 equity in the partnership to brittney,
    14·1 answer
  • Reunion BBQ has $4,000,000 of notes payable due on March 11, 2017, which Reunion intends to refinance. On January 5, 2017, Reuni
    7·1 answer
  • On January 1, 2016, American Corporation purchased 30% of the outstanding voting shares of Short Supplies common stock for $240,
    10·1 answer
  • A $600,000 state lottery prize is spread evenly over twelve years ($50,000 a year) (Alternative 1), or you may take a lump distr
    7·1 answer
  • An internet company gives their old computer system to the computer science
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!