Answer:
Total cash disbursement= $262,000
Explanation:
Giving the following information:
Purchases:
January= $200,000
February= $220,000
March= $290,000
Cash payments are 60% in the month of purchase and 40% in the following month.
<u>Cash disbursement March.</u>
Purchase on cash March= 290,000*0.6= 174,000
Purchase on account from February= 220,000*0.4= 88,000
Total cash disbursement= $262,000
The effect on aggregate demand is: left Shift in the Aggregate Demand Curve - expectations.
Effect on aggregate demand
Left Shift in the Aggregate Demand Curve - expectations means that the total amount consumer tends to spend on goods and services are decreasing.
Consumer spending less can occur when things are costly or due to the inflation which is the rise in the price of goods and services in the market.
Inconclusion the effect on aggregate demand is: left Shift in the Aggregate Demand Curve - expectations.
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