A simple
Keynesian model follows four principles:
<span>1. Accumulated
expenditures, income, and output are the same.
2. All input of spending into the economy must equal
all withdrawals
3. Investment is an input.
4. Saving is a withdrawal</span>
<span>
According to Keynesian analysis, of households intend to save more, they
will become poorer. The theory about Keynesian analysis applies to
economic where an increase in savings decreases the circular flow of income. S
when the households save more, they are reducing the stream of income for other
households and therefor diminishes the overall economic activity.</span>
Answer:
$2,800
Explanation:
Particulars Amount
Favorable temporary difference at the end of 20X2 $7000
* Income tax rate <u> 40% </u>
Deferred tax asset account at the end of 20X2 <u>$2,800</u>
Answer:
E. The demand for loanable funds increases.
Answer 1: The Correct answer is C) the average prices of goods and services decreased between last year and this year.
CPI stands for consumer Price Index. Also known as the 'basket' the index is developed by national governments to monitor the prices of basic goods and services used by the population.
This has to include basic items that the majority of population uses every day e.g. milk, chicken, electricity etc.
In this case, the CPI had decreased from 91.0 to 90.0 which means the prices fell.
Answer 2: The correct answer is A) 3.6%
The formula to calculate unemployment rate is:
No. of unemployed ÷ No. of Working People x 100
In this case, it was 9 million divided by 250 million x 100
3.6% unemployment rate is actually very less for an economy and is an indicator that the economy is doing well and creating enough jobs for most people. A high unemployment rate signals a worsening economy.
