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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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On November 1, Wright Co. borrowed $20,000 cash from Third Bank by signing a 90-day, 6% interest-bearing note.

Andrews [41]

On January 30, the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.

Explanation:

On November 1, Wright Co. borrowed $20,000 cash from the Third Bank by signing a 90-day, and 6% of interest-bearing note.

On December 31, it was recorded an adjusting entry to interest expense of $200.
On January 30, which is the due date of the note, Wright will record the payment with a debit to Interest Expense in the amount of $100.
Interest expense is an expense which is known as a non-operating expense which is shown on the income statement. It also represents interest payable amount when it is borrowed. For Example,
bonds,convertible debt, loans or lines of credit
The main difference between the interest expense and the interest paid is that the discount amount and this difference changes the net amount of bond liability.
Interest expense is an amount determined by the interest rate on an account.

4 0

3 years ago

DuBois, Inc. announces a large stock dividend of 65% of the 4.96 million outstanding shares of common stock. The current price p

Karolina [17]

Answer:

Option (B) is correct.

Explanation:

Dividend per share:

= (65% of Par value of the stock)

= (65% × 0.01)

= $0.0065

Hence, the total dividend:

= (Dividend per share × outstanding shares of common stock)

= (0.0065 × 4.96 million)

= $32,240

Hence, the dividend would cause a decrease in retained earnings.

Therefore, the correct option is B.

6 0

3 years ago

The Goldfarb Company manufactures and sells toasters. Each toaster sells for $24.45 and the variable cost per unit is $16.65. Go

Tasya [4]

Answer:

$67860

Explanation:

sell price of each toaster= $24.45

variable cost per unit= $16.65

total fixed cost= $25,700

number of unit sold x= 8700

the formula for contribution margin is

= sales price- variable cost

= (s-v)x

putting values we get

= $(24.45-16.65)\times8700$

= $67860

Hence the contribution margin the above case will be $67860

8 0

3 years ago

Decision support systems ____.a.might support a decision maker in only one or two of the problem-solving phases support optimiza

____ [38]

Answer:

all of the above

Explanation:

<u>Decision support systems</u> is a computer system that uses information systems. <em>The main objective</em> of this program is to assist in organizational decision making. To be enabled for this function, the system operates using a large amount of data, which converts information and compiles the most relevant information to provide existing alternatives that assist the effective decision making process.

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3 years ago

Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price

Roman55 [17]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Standard quantity= 7.8 grams per unit of output

Standard price= $6.50 per gram.

During the month the company purchased 27,900 grams of the direct material at $6.70 per gram.

To calculate the material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (6.5 - 6.7)*27,900

Direct material price variance= $5,580 unfavorable.

It is unfavorable because the actual price was higher than estimated.

4 0

3 years ago