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3 years ago

When aggregate demand is high enough to drive unemployment below the natural rate:_________

Business

1 answer:

ad-work [718]3 years ago

6 0

Answer:

e. there is downward pressure on the price level, and the government may want to conduct expansionary fiscal policy.

Explanation:

At the time of boom in the economy, the unemployment rate is beneath than the rate i.e. natural also it gives rise to the growth of the economy, along with it the expenditures, consumer spending also increased that ultimately increased the disposable income.

This results in the upward movement in terms of pressure on the aggregate demand that leads to a rise in the level of price and the real GDP also rises which reduced the unemployment

But when the aggregate demand is less so there is a downward pressure on the price as the level of price declines so that the aggregate demand increased and it is requirement made by the government for an expansionary fiscal policy that give increased in government spending or taxes decreased in order to raise the aggregate demand

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Last year, you purchased land to build a retail store. You paid $20 million for the land. Another business has now offered $8 mi

vesna_86 [32]

Answer:

a. $8 million

Explanation:

In the given situation, the $8 million is the best price to finalize your decision as $20 million costs is that cost which is paid last year and these costs are called sunk cost which is not recovered in the future, that means it is already incurred in the past.

Moreover, the sunk cost is not a part of the future decision as this cost is irrelevant now

So, $8 million is a relevant cost to make a better decision

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4 years ago

Pfister Corporation has Current Assets of $200,000, Current Liabilities of $150,000, Total Liabilities of $340,000 and Owners' E

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3 years ago

Describe briefly what an automatic identification system (AIS) is and how service organization could use AIS to increase product

MrRa [10]

Answer:

An automatic identification system (AIS) is an automated tracking device fitted to a vehicle or vessel to display objects around the vicinity of the vessel on a screen. This helps the driver of a vehicle, for instance, to identify such objects and know how to afford head-on collisions. For a ship, the signal sent to the VT station helps in monitoring movements around the ship.

Explanation:

Most ships are fitted with AIS to enable Vessel Tracking services. The AIS also shows the other ships that are around and transmits the information to the Vessel Tracking Station (VTS). Some modern cars are fitted with AIS to help the driver to identify obstructive objects. The identified signal is displayed on the dashboard of the car just as the maritime AIS displays on the ship's dashboard as it also transmits to the VTS.

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4 years ago

Why do companies practice price discrimination

timofeeve [1]

Its almost the same thing as price gouging but not really

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4 years ago

Read 2 more answers

On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6

Slav-nsk [51]

Answer:

23rd May

Dr Cash 960,000

Cr Common stock 240,000

Cr Paid-in Capital - Common Stock 720,000

( to record the issuance of 80,000 common shares for cash)

6th July

Dr Cash 900,000

Cr Preferred stock 900,000

( to record the issuance of 18,000 preferred shares for cash)

15th September

Dr Cash 750,000

Cr Common stock 150,000

Cr Paid-in capital - Common Stock 600,000

( to record the issuance of 50,000 common shares for cash)

Explanation:

Working notes for each transactions:

* 23rd May:

Cash increases by: Amount of stocks issued * Price at issuance = 80,000 * 12 = $960,000

Common stock account increases by: Amount of stock issued * Stated value = 80,000 * 3 = 240,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 80,000 * 9 = $720,000

* 6th July:

Cash increases by: Amount of stocks issued * Price at issuance = 18,000 * 50 = $900,000

Preferred stock account increases by: Amount of stock issued * Par value = 18,000 * 50 = $900,000;

As shares are issued at par; no paid-in capital amount recorded.

* 15th September:

Cash increases by: Amount of stocks issued * Price at issuance = 50,000 * 15 = $750,000

Common stock account increases by: Amount of stock issued * Stated value = 50,000 * 3 = 150,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 50,000 * 12 = $600,000.

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3 years ago