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3 years ago

Which components of aggregate expenditure are influenced by real gdp?

Business

1 answer:

Bess [88]3 years ago

5 0

Answer:

Consumption and Imports

Explanation:

Two of the components of aggregate expenditure that are influenced by real GDP are consumption and imports.

Firstly, consumption as a major component of aggregate expenditure is impacted by adjustment for real prices which reduces real income and by extension, consumption - because income is a determinant of consumption.

Secondly, an increase in real GDP is an increase in aggregate demand of which imports are a component

Hence, an increase in real GDP is an increase in planned expenditures and planned income

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How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/

JulsSmile [24]

Answer:

97 days

Explanation:

In simple interest method, the interest is calculated by the following formula

I= P x R x T

I= interest

P = principal amount

R =interest rate

T= Time

In this case

I=$16

P=$1500$

R= 4% or 0.04%

T= time

$16= $1500 x 0.04 x Time

$16 =60 x Time

Time = 16/60

time = 0.2666 year.

time in days = 0.26666 x 365 days

=97.333 days

=97 days

8 0

3 years ago

The US agricultural sector experienced a severe drought in 2012. A drought decreases the supply of agricultural products, which

Nataliya [291]

Answer:

True

Explanation:

Exceptionally good weather will guarantee a good yield in crops. This will lead to an increase in supply of produce to the market, and when supply increases, the supply curve shifts to the right.

This is simply because there are more products and more sellers, and this will result in more supply.

5 0

4 years ago

g Cathy Rogers deposits $200 in currency in her checking account at a bank. This deposit is treated as:

Step2247 [10]

Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits

Explanation:

The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.

All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.

Money supply therefore remains the same.

4 0

3 years ago

1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchas

marin [14]

Answer:

1. a. Allocated prices

First add the market values = 444,150 + 255,150 + 56,700 + 189,000 = $945,0

Building allocated price Land allocated price

= 444,150/ 945,000 * 830,000 = 255,150/945,000 * 830,000

= $‭390,100‬ = $224,100

Land improvement allocated price Four vehicles allocate price

= 56,700/945,000 * 830,000 = 189,000/945,000 * 830,000

= $49,800 = $166,000

b. Journal entry

Date Account Details Debit Credit

Jan. 1, 2017 Building $390,100

Land $224,100

Land improvement $49,800

Vehicles $166,000

Cash $830,000

2. Depreciation on building using straight-line method.

= (390,100 - 28,000) / 15

= $‭24,140‬

3. Depreciation on land improvements using double declining method.

First do straight line:

= 49,800/ 5 years

= $9,960

Straight line rate of depreciation = 9,960/49,800 = 20%

Double declining will be twice that rate = 40%

Depreciation = 40% * 49,800

= $‭19,920‬

4 0

3 years ago

In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,

IrinaK [193]

Answer:

a. Premium

b. Discount

c. Discount

Explanation:

a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium

Therefore, Valley's bond will sell at a premium.

b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, Spring's bond will sell at a discount.

c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.

Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount

Therefore, River Inc.'s bond will sell at a discount.

3 0

3 years ago

Which components of aggregate expenditure are influenced by real​ gdp?

Which components of aggregate expenditure are influenced by real gdp?