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3 years ago

If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.

Business

1 answer:

nirvana33 [79]3 years ago

6 0

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE = AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

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Naddika [18.5K]

Answer:

It will take 1 year and 307 days to cover the initial investment.

Explanation:

Giving the following information:

Initial investment= $6,900

Cash flows:

Cf1= $4,200

Cf2= $5,100

Cf3= $6,300

Cf4= $5,500

Discount rate= 15%

The payback period is the time required to cover the initial investment. We need to discount each cash flow.

Year 1= 4,200/1.15 - 6,900= -3,247.83

Year 2= 5,100/1.15^2 - 3,247.83= 608.50

To be more accurate:

(3,247.83 / 3,856.33)*365= 307 days

It will take 1 year and 307 days to cover the initial investment.

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3 years ago

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aleksandr82 [10.1K]

Answer:

TRUE

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2 years ago

oksian1 [2.3K]

The descriptions to cases that will possibility be addressed by a Trial Balance are:

can detect the accuracy of the accounting process(possible)

can help check whether the debit side is equal to the credit side(possible)

can help prepare the income statement(possible)

helps serve as a proof of the application of the double-entry system(not possible)

can help check whether a particular transaction has been completely omitted(not possible)

<h3>What is trial balance?</h3>

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Therefore, with trial balance, one can check whether the debit side is equal to the credit side.

learn more about trial balance at:brainly.com/question/24217989

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