If aggregate demand in the long run is falling for several months in a row, it will make aggregate market results in an increase in the price level but no change in real production. The level of real production resulting from the aggregate demand shock is full-employment real production.
Aggregate demand can be described as a measurement of the total amount of demand for all finished services and goods produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those services and goods at a specific point in time and price level.
The model of aggregate demand and long-run aggregate supply predicts that the economy will eventually move toward its potential output. To see how nominal wage and price stickiness can cause real GDP to be either above or below potential in the short run, consider the response of the economy to a change in aggregate demand.
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Answer:
- Digby will issue stock totaling $1,023,000
- Long term debt will increase from $33,575,852 to $34,598,852
Explanation:
50,000 shares were issued at $20.46.
This means the total raised from stock sales were:
= 50,000 * 20.46
= $1,023,000
Long term debt will increase by:
= Debt + New issue
= 33,575,852 + 1,023,000
= $34,598,852
<em>Note: The options listed are most probably for a variant of this question. Also, Stock issues are considered equity but for the sake of this question are considered Long term debt. </em>
Answer:
The answer is: B) concentrated/niche marketing
Explanation:
Niche (or concentrated) marketing concentrates all of its actions and promotions on small but very specific and well defined segments of the population. A niche marketing strategy focuses on becoming a big fish on a small pond, and usually charging a higher price for the niche product. The specific needs and requirements of those "niche customers" are usually not well addressed by mass marketing actions.
Answer:
B) increased by 5,000 units
Explanation:
For computing the inventory level, first we have to determine the fixed cost per unit which is shown below:
Fixed cost per unit = Total fixed cost ÷ number of units produced
=$60,000 ÷ 10,000
=$6
Now the inventory level would be
= (Net operating income using absorption costing - Net operating income using variable costing) ÷ (Fixed cost per unit)
= ($95,000 - $65,000) ÷ $6
= $30,000 ÷ $6
= 5,000 units increased