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3 years ago

Which part of real GDP fluctuates most over the course of the business cycle?

Business

1 answer:

ozzi3 years ago

6 0

Answer:

c. investment expenditures

Explanation:

The reason for this is that during business cycles investors gain trust in the economy during a boom and invest a lot and during a recession they lose trust in the economy and decrease their investment by a lot, where as a lot of consumption like food, medicine, petrol etc remains mostly unaffected by changes in business cycle. Also government spending does not fluctuate a lot during the course of a business cycle because government spending is either long term like development projects.

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2 years ago

Suppose the economy is in long-run equilibrium. Then because of corporate scandal, in- ternational tensions, and loss of confide

dsp73

Answer:

The answer is: b

Explanation:

In long-run equilibrium, the long run aggregate demand curve and aggregate supply curve intersect where the marginal revenue (revenue derived from selling an additional unit) and marginal cost (cost incurred from producing) an additional unit) are equal. In the long-run equilibrium, this intersection occurs at the lowest point of the long-run average total cost curve (curve depicting the average cost per unit of production).

Holding all else constant, short run changes in the economy would not change the potential output levels. The long-run aggregate supply curve would remain fixed at the potential level of output. However, these changes: international tensions, corporate scandals and loss of confidence in policymakers would cause shifts in the aggregate demand curve since demand would be adversely affected.

Consumer confidence is the perspective or outlook that consumers have on the state of the economy. The destabilising factors given in this scenario would raise the levels of uncertainty and perceived risk, reducing the confidence levels of consumers and ultimately resulting in reduced demand. In long-run equilibrium, when demand is reduced, it is indicated by a leftward shift in the aggregate demand curve.

7 0

3 years ago

Mike organizes a group of students upset over the food selection in the cafeteria. He assigns times for students to stand in the

alukav5142 [94]

Answer:

interest group

Explanation:

Based on the information provided within the question it can be said that this is an example of an interest group. This term refers to group of individuals that share a common interest and because of it work in unison in order to influence the government so that they promote and protect that interest. Which in this scenario the group's main interest is on the food selection in the cafeteria, and are working together to influence the organizational entity to change it.

3 0

3 years ago

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the followin

kobusy [5.1K]

The consolidation worksheet entries for December 31, 2020, and December 31, 2021 is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

<h3> Consolidation worksheet entries </h3>

December 31, 2020

Entry S

Debit Common Stock -Abernethy $250000

Debit Additional paid-n capital – Abernethy $50,000

Debit Retained earnings $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry for Abernethy common stock)

Entry A

Debit Goodwill $107,510

Credit Investment in Abernethy $107,510

($731,110-$250,000+$323,600+$50,000)

(To recognize excess acquisition cost as goodwill)

Entry I

Debit Equity in Earnings of Subsidiary $129,000

Credit Investment in Abernethy $129,000

(Elimination entry for inter-company income for 2020)

Entry D

Debit Investment in Abernethy $16,000

Credit Dividends paid $16,000

(Elimination of inter-company dividend payments)

Entry E

No Journal Entry Required

(Unamortized goodwill under the partial equity method)

Entry C

No Journal entry required

(Goodwill unamortized)

December 31, 2021

Entry S

Debit Common Stock – Abernethy $250,000

Debit Additional-Paid-in Capital –Abernethy $50,000

Debit Retained Earnings –Abernethy $431,110

($731,110-$250,000-$50,000)

Credit Investment in Abernethy $731,110

(Elimination entry of beginning stockholder’s equity balances of Subsidiary)

Entry A

Debit Goodwill $145,000

Credit Investment in Abernethy $145,000

(To record goodwill balance)

Entry I

Debit Equity in Earnings in Subsidiary $176,000

Credit Investment in Abernethy $176,000

(Elimination of inter-company accrual for the year 2021)

Entry D

Debit Investment in Abernethy $38,000

Credit Dividends Paid $38,000

(Elimination of inter-company dividend payments)

Entry E

No journal entry is required

Therefore the entries is: Debit Common Stock -Abernethy $250000; Debit Additional paid-n capital – Abernethy $50,000; Debit Retained earnings $431,110; Credit Investment in Abernethy $731,110.

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4 0

2 years ago