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monitta
3 years ago
12

Suppose that a rise in business confidence has led to more investment in the economy and higher levels of output. In the short-r

un, Keynesian analysis says the rise in aggregate demand will ________ while the neoclassical model predicts ________ in the long-run. g
Business
1 answer:
Shtirlitz [24]3 years ago
8 0

Answer: Keynesian economic theory

Explanation: Keynesian analysis says the rise in aggregate demand will ___boost growth _____ Keynesians believe consumer demand is the primary driving force in an economy. while the neoclassical model predicts ____looked at labor contracts as sources of wage stickiness to generate equilibrium models of unemployment.____ in the long run.

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What are Financial Statements??​
kiruha [24]

Answer:

Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.

Explanation:

Hope this helps

7 0
2 years ago
Read 2 more answers
The accounting equation is assets = liabilities + owner’s equity.
Anon25 [30]

Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

Profits increase owner's equity, as well as capita contributions, whether in the form of stocks, equipment, or other financial instruments.

Costs and expenses are substracted from revenues, and therefore they reduce profits, and owner's equity.

C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account                                    Debit                Credit

Cash                                        $7,000

Common Stock                                                 $5,000

Additional Paid-In Capital                                $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

                                                     = $7,000 = 0 + $7,000

As can be seen, the accounting equation is true even in the earliest stages of the corporation.

6 0
3 years ago
What Is a fixed asset that has a value at the time to be retired from service called?​
just olya [345]
More explanationLike pics or something
4 0
2 years ago
Company X currently has a capital structure that consists of 40% equity, 20% preferred equity, and 40% of debt. The risk-free ra
Sindrei [870]

Answer:

14.58%

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate) + weight of preferred equity x dividend yield

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

r= 3% + 1.1 x 8 = 11.8

equity = 0.4 x 11.8% = 4.72

d = 0.4 x 5 x (1 -0.21) = 1.58

p = 0.2 x 6 =  1.2

11.8 + 1.58 + 1.2 =

8 0
3 years ago
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value
jolli1 [7]

Answer:

-3 million dollars

Explanation:

we have EVA = economic value added

to ge the EVA, we use this formula :

(operating return on the assets - cost of the total capital) multiplied by the total assets

total assets = 100 million

operating return = 12 percent

cost of capital = 15 percent

the EVA = 12% - 15% * 100000000

= -0.03 * 100000000

= -3,000,000 dollars

b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.

3 0
2 years ago
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