The middle layer of elements in a firms external environment, primarily concerned with a firms industry situation.
If the quantity of real domestic output demanded increased by $1,000 at each price level, then, according to macroeconomics, the new equilibrium price level and quantity of real domestic output would be 150 and $4,000.
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What is macroeconomics?</u></h3>
- Macroeconomics is a subfield of economics that focuses on the behavior of an economy as a whole, including the market and other large-scale processes.
- Inflation, price levels, economic growth rates, national income, gross domestic product (GDP), and variations in unemployment are only a few examples of the phenomena that macroeconomics analyzes.
- Macroeconomics makes an effort to assess how well an economy is operating, comprehend the forces that shape it, and predict how performance could increase.
- In contrast to microeconomics, which focuses primarily on the decisions made by individual economic actors, macroeconomics examines the functioning, structure, and behavior of the entire economy (like people, households, industries, etc.).
Curves of supply and demand cross at the equilibrium price. We would forecast that the market will function at this pricing.
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OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to A. an inelastic demand for oil and a reduction in the amount of oil supplied.
Inelastic demand is where the demand for a product does not increase or decrease with the fall or rise in its price. When someone believes that a product is inelastic to them, then their demand won't change even though the price changes. Since OPEC was able to raise the oil price and it was still consumed, it is a product of inelastic demand.
Answer:
Impact on Net Earnings to Sales and Net Earnings to Total Book Assets:
a) A company's Net Earnings to Sales and Net Earnings to Total Book Assets will increase from the 30% due to the 30% increase in sales. This is because the Cost of Goods Sold remained constant.
b) Net Earnings to Sales and Net Earnings to Total Book Assets will decrease by 30% as a result of the increase in Property, Plant, and Equipment, because these also increased the operating and administrative expense, even though Sales and Cost of Goods Sold remained constant.
Explanation:
The net earnings to sales express the ratio of the net income to the sales revenue. The net earnings are the result of deducting all costs from sales revenue. The net earnings to total book assets are the same expression as the Return on Assets.
Globalisation is the growing interconnectivity of the world through the use of trade, travel and media.
