Answer:
A. The Supply Curve shifts Right.
As American Producers are paying less in dollar terms, their costs of production will reduce. The reduction in Cost of Production will spur producers to produce even more because inputs are cheaper and more will be bought and processed and so the Supply will increase and shift the Supply Curve left.
B. Aggregate Demand Curve shifts Right.
As a result of more money being in the Economy, more people will want to lend out the excess cash they have to earn some interest on it. This will reduce the cost of borrowing and will therefore spur people to borrow more to be able to afford things they want. With the people having more money, they will buy more things therefore upping Demand. The Demand Curve will shift to the Right as a result.
C. Supply Curve shifts Left
Wages are an input into Production. Should they increase that would mean that the cost of Production has risen as well for Producers. They will respond by reducing the amount of goods they produce so as to maintain Profitability and reduce those costs. This will cut supply and shift the Supply Curve to the left.
D. Movement along Short Run Aggregate Demand Curve
Aggregate Demand Curve is constructed based on the demand of the Economy at different prices levels. Should the Price Level decrease it is simply a movement along the Aggregate Demand Curve.
Answer:
A. product such as a repair job and a project such as an advertising campaign
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Answer:
(1) 6%; 1.7; 10.20%
(2) 3%; 4; 12%
Explanation:
ROI = Margin × Turnover (Note Margin in % and Turnover in Ratio)
Where,
Margin = Net operating income ÷ Sales
Turnover = Sales ÷ Average operating assets
For Queensland:
Margin = 54,060 ÷ 901,000
= 6% (approx)
Turnover = 901,000 ÷ 530,000
= 1.7
ROI = 6% × 1.7
= 10.20%
For New south wales:
Margin = 74,400 ÷ 2,480,000
= 3% (approx)
Turnover = 2,480,000 ÷ 6,20,000
= 4
ROI = 3% × 4
= 12%
