Starting from a full-employment equilibrium, an increase in aggregate demand increases, and creates an inflationary gap.
In an economy, the total quantity of demand for all finished goods and services is measured as aggregate demand. A measure of aggregate demand is the total amount of money spent on certain goods and services at a particular price level and period.
The entire demand for products and services at any given price level throughout a specific period is referred to as aggregate demand in macroeconomics. Since the two indicators are derived in the same way, aggregate demand over the long run equals gross domestic product (GDP). A country's gross domestic product (GDP) reflects all the products and services that are produced there, whereas aggregate demand refers to consumer demand for the same goods.
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In order to determine average variable cost, the firm's variable costs are divided by the amount of output.
<h3><u>
What is average variable expense formula?</u></h3>
The variable cost per unit in economics is the average irregular cost. By dividing the overall variable cost by the output, one may get the average variable cost. In the near term, the businesses utilize the average changing cost to choose when to end their presentation.
<h3><u>How do you calculate variable cost examples?</u></h3>
More specifically, the two primary categories of variable costs—total labor costs and total material costs—combine to form unstable costs. As an alternative, variable costs may be calculated by dividing the cost per unit by the overall quantity produced.
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Answer:
to motivate high performance for uninteresting jobs make performance contingent on extrinsic rewards.
Explanation:
Extrinsic rewards means the motivation i.e. controlled and produced via payment, awards and appreciations. In the case when the job is not interesting so the motivation level should be high in this situation and when the job is interesting the motivation level should not high
So as per the given situation, the above statement should be considered as an answer
Answer:
The debit to the retained earning should be $750,000 for this transaction because that is the market value of the asset to be distributed as dividend.
Explanation:
Property dividend is a form of dividend payout that involves distribution of company`s assets to equity holders as a form of return. These assets can be inventory, marketable securities or investment in a subsidiary.
For this distribution to be formal, it must be approved by the board of directors of the company. After approved and declared, the accounting entries can now be passed.
The accounting entries needed are:
Debit: Retained Earnings with the amount of the asset distributed.
Credit: Dividend Payable with the amount of the asset distributed.
It is important to note that the market value of asset to be distributed should be considered i.e the market value of the asset must be recognized in the book. The difference in book value and market value of the investment will be recognized in respective asset ledger account prior transfer to retained earnings.So that the market value of the investment is recognized on the debit side of retained earnings
In the case of Fitzgerald, $750,000 will be debited to retained earnings since it is the market value of the asset to be distributed.
