Answer:
C) It is a vertical line at $600 billion of GDP
Explanation:
Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.
Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.
In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.
Hi Ddestinyclark8385,
<span><u>A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $12,000 credit balance in retained earnings. what is the balance in the contributed capital accounts?</u>
</span>b. $32.000
Answer:
Debit Credit
Cash $18,468
Sales $18,468
(Being Cash sales made.)
Sales Commission Expense 79
Cash 79
(Being commission paid on sales.)
So thus the balance of cash book = $18468 - 79 = $18,389
Explanation:
Answer:
Option D. All of the statements above are correct.
Explanation:
The reason is that the capital budget is the budget of investment in the business and in the current situation their is shortage of fund. So to meet the demand we can not pay dividends because it reduces the available cash available for investment. So the option A is incorrect.
Option B is also incorrect because the reducing debt ration means paying off the liabilities which again decrease the amount of cash available to invest in the company. So the option B is incorrect.
Increasing the proposed capital budget will require greater amount of funds. As we are already in shortage of funds, increasing capital budget is not the right course of action. So the option C is also incorrect.
Option E is also incorrect none of the option was correct, hence the correct option is D.