All categories

3 years ago

Which of the following best describes why the aggregate demand curve is downward sloping?

1 answer:

3 0

Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.

Explanation:

The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.

The AD comprises of Investment, Consumption Spending, Government spending and Net Income.

When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.

Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.

Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.

You might be interested in

Explain different ways a company is applying management

GREYUIT [131]

Explanation:

Organizational management is extremely important for conducting business. Managing is the process of measuring, monitoring, organizing, controlling and administering, through these variables it is possible for a company to know its strengths and weaknesses and coordinate them so that it has a greater chance of being competitive and profitable in the market.

Each organization can manage the business in different ways, this will depend on its objectives and organizational structure, the most important is that the management is aligned with a strategic planning that understands the objectives and goals of the organization so that it remains well positioned in the competitive market .

5 0

3 years ago

Which statement is false about liquidity?

BARSIC [14]

Answer:

Option D. Both A and B

Explanation:

The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.

8 0

3 years ago

Suppose the customer data analysis software used by ABC Bank is significantly changed, and its documentation is therefore revise

viva [34]

Based on the information given this type of maintenance is called a maintenance release.

A maintenance release is a release which help to make correction on security issues such as threat or vulnerability without modifying or adding new features to the software.

Maintenance release help to fix or repair programming errors that occur during the software life cycle stage or programming error that occur due to mistake during the requirement stage validating process.

Software that are released often undergo a maintenance release so as detect and fix any error or bug that was detected.

Inconclusion this type of maintenance is called a maintenance release.

Learn more about maintenance release here:brainly.com/question/13860230

6 0

2 years ago

Compare and contrast the U.S. Constitution and the Arizona Constitution. Discuss three findings that account for the significant

marysya [2.9K]

Development, Structure and powers of U.S constitution and Arizona constitution have a huge comparison.

<u>Explanation: </u>

Unlike the United States Constitution, which was embraced in 1787, that wasn't until 1912 that perhaps the Arizona Constitution was accepted, leading to the creation of the 48 states

The common terms,' we the people' all constitutions begin with, but include many different things. After all, there were certain differences between one condition and another for a set of fifty.

The Arizona Constitution states that the legislature must be split into three parts-Legislative, Legislative and executive–which are not applicable to the United States Constitution

Many think of forms to deny or expel someone from office. They will enforce them in both Constitutions. All define the qualifications for their office if they would like to run for office. Another connection that I found was apparent but significant nonetheless.

They both mention the theme of religious liberty, one of the most valuable values in our society. Eventually, both inspire their lawmakers to negotiate with them.

5 0

3 years ago

Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,620 Cost of goods sold 4,240 Depreciation 355 Earnings before

Mademuasel [1]

Answer:

1.59 times

Explanation:

Average total assets = Beginning total assets + Ending Total assets / 2

Average total assets = 6,470 + 6,705 / 2

Average total assets = $6,587.5

Beginning Total equity = Common stock + Retained earnings

Beginning Total equity = $3,240 + $3,080

Beginning Total equity = $6,320

Ending Total equity = Common stock + Retained earnings

Ending Total equity= $880 + $1,130

Ending Total equity = $2,010

Average total equity = Beginning Total equity + Ending Total equity / 2

Average total equity = $6,320 + $2,010 / 2

Average total equity = $4,165

Equity multiplier for 2017 = Average total assets / Average total equity

Equity multiplier for 2017 = $6,587.5 / $4,165

Equity multiplier for 2017 = 1.581632653061224

Equity multiplier for 2017 = 1.5816 times

7 0

3 years ago