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3 years ago

Which of the following will shift the aggregate demand curve to the left?

Business

1 answer:

lisov135 [29]3 years ago

3 0

Answer:

A. Interest rates rise.

C. There is an economic boom overseas that raises the incomes of foreign households.

Explanation:

Option A - It is correct because if the interest rate increases, consumer spending will decline. Therefore, the aggregate demand curve will shift to the left.

Option B - If the government reduces the personal income tax, the consumers will spend more, it will lead the aggregate demand to the right. So, it is wrong.

Option C - Foreign households' income will lead to more savings. Therefore, spending will decline. So, it is the correct statement.

Option D - It is incorrect because corporate profit tax will not consider in the aggregate demand.

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Which of the following is not a business transaction?

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Answer:

D. Erin pays her monthly personal credit card bill.

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3 years ago

US taxpayers who attended college or university in the past year can deduct the interest paid on student loans from their taxabl

nexus9112 [7]

Answer: b. redistributing income

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3 years ago

Diogo has a utility function,U(q1, q2) = q1 0.8 q2 0.2,where q1 is chocolate candy and q2 is slices of pie. If the price of slic

guapka [62]

Answer:

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

Explanation:

U(q₁ q₂)

$q_1^{0.8}q_2^{0.2}\\\\P_1= \$0.5 \ P_2=\$1 \ Y=100$

Budget law can be given by

$P_1q_1+P_2q_2=Y\\\\0.5q_1+q_2=100$

Lagrangian function can be given by

$L=q_1^{0.8}q_2^{0.2}+ \lambda (100-0.5q_1-q_2)$

First order condition csn be given by

$\frac{dL}{dq} =0.8q_1^{-0.2}q_2^{0.2}-0.5 \lambda=0\\\\0.5 \lambda=0.8q_1^{-0.2}q_2^{0.2}---(i)$

$\frac{dL}{dq} =0.2q_1^{0.8}q_2^{-0.8}- \lambda=0\\\\ \lambda=0.2q_1^{0.8}q_2^{-0.8}---(ii)$

$\frac{dL}{d \lambda} =100-0.5q_1-q_2=0\\\\0.5q_1+q_2=100---(iii)$

From eqn (i) and eqn (ii) we have

$\frac{0.5 \lambda}{\lambda} =\frac{0.8q_1^{-0.2}q_2^{0.2}}{0.2q_1^{0.8}q_2^{-0.8}} \\\\0.5=\frac{4q_2}{q_1}\\\\q_1=8q_2}$

Putting $q_1=8q_2$ in euqtion (iii) we have

$(0.5 \times 8q_2)+q_2=100\\\\5q_2=100\\\\q_2=20$

since $q_2 = 20$

$q_1 = 8*20\\\\q_1=160$

3 0

3 years ago

(CO D) Identify the four types of nonexchange transactions and discuss the rules for recognition of revenues and expenses and ex

Karo-lina-s [1.5K]

Answer:

Non-exchange transaction:

In non-exchange transaction a government gives (or receives) value without directly receiving (or giving) equal value in exchange.

Types

- Derived Tax Revenues

- Imposed Non-Exchange Revenues

- Government-Mandated Non-Exchange Transactions

- Voluntary Non-Exchange Transactions

1) Derived Tax Revenues

It result from assessments imposed by governments on exchange transactions. Examples include taxes on personal income, goods or services.

Assets Recognition : Recognize assets from derived tax revenue transactions in the period when the exchange transaction occurs or when the resources are received, whichever occurs first.

Revenue Recognition : Recognize revenues, net of estimated refunds and estimated uncollectable amounts, in the same fiscal year that the assets are recognized, provided that the underlying exchange transaction has occurred

2) Imposed Non-Exchange Revenues

It results from assessments by government on non-governmental entities, including individuals. Examples include: Fines and penalties, etc.

Assets Recognition :Assets from imposed non-exchange revenue transactions are recognized when an enforceable legal claim arises or the assets are received, whichever occurs first.

Revenue Recognition :Recognize revenues in the same period the assets are recognized unless the enabling legislation includes time requirements.

3) Government-Mandated Non-Exchange Transactions

It occurs when a government at one level provides resources to a government at another level and requires that government to use the resources for a specific purpose or purposes established in the provider’s enabling legislation.

Assets Recognition : When all applicable eligibility requirements are met, recipients recognize receivables (or a decrease in liabilities) and providers recognize liabilities (or a decrease in assets).

Revenue Recognition : When all applicable eligibility requirements are met, recipients recognize revenues (net of estimated uncollectible amounts) and providers recognize expenses from government-mandated or voluntary non-exchange transactions.

4) Voluntary Non-Exchange Transactions

It results from legislative or contractual agreement entered into willingly by two or more parties.

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3 years ago