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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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Sheela Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, this unprocessed milk is broken down into

Dafna11 [192]

Answer:

The answer is D) None of these statement is relevant in the decision to further process the cream into butter.

Explanation:

option A) the amount paid to the farmers to purchase the unprocessed milk: this information is not relevant to further develop the cream and low fat milk to butter. It was already considered before this stage of production.

Option B) the cost of breaking down the unprocessed milk into cream and low-fat milk: this cost was already accounted for since the processing into cream and low fat milk is completed.

Option C) the portion of corporate fixed expenses that are currently being allocated to cream: This information is not going to help in the decision making for further processing.

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3 years ago

Pierce wishes to purchase a municipal bond with a par value of $500 from Chattahoochee County, and he is trying to decide which

Mrrafil [7]

He should take the option one of sales commission of 3.1% on each bond. If he takes the 2nd option, he is required to pay 24$ per bond. But if he takes the ist option, he is required to pay 15.5$ per bond. 88.754 is the market rate. Total investment is of 500$. Multiply the commission rate with the amount and you get 15.5 $. There is a difference of 8.5 dollars between the two options.

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3 years ago

Read 2 more answers

Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim

jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr, $560

To Deferred revenue $560

(Being cash is received)

2. Deferred revenue $336

To Sales revenue $336

(Being 12 months sales service is recorded)

3. Cost of goods sold $280

To Inventory $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12) $28

To Service revenue $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

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2 years ago

Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more

Aleks04 [339]

Answer:

a. AD curve will shift to the right

b. AD curve will shift to the left

c. Movement along the AD curve.

Explanation:

a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.

b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.

c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.

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3 years ago

Jon enjoys fishing (which costs $20) and golf (which costs $30). last month, jon fished four times and golfed twice. the last fi

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He did maximize the utility <span>according to the utility maximization rule</span>.

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3 years ago