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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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Ashton Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materi

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

In December 2016, Ashton budgeted 2017 assembly-support costs to be $8,300,000 and 2017 direct labor-hours to be 166,000.

With this information, we can calculate the budgeted indirect cost rate. <u>However, we can't calculate the actual indirect cost rate. I will provide the formula for both and a small example of the actual indirect cost rate.</u>

To calculate the budgeted indirect cost rate, we need to use the following formula:

Budgeted indirect cost rate= total estimated indirect costs for the period/ total amount of allocation base

Budgeted indirect cost rate= 8,300,000/166,000= $50 per direct labor hour.

Let's suppose that actual indirect cost was of 8,000,000 and actual direct labor hours of 175,000:

Actual indirect cost rate= total actual indirect costs for the period/ total amount of allocation base

Actual indirect cost rate= 8,000,000/175,000= $45.71 per direct labor hour

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3 years ago

Millcorp sells wetsuits for deep sea divers. It recently engineered a new material for its wetsuits to better hold in the wearer

spin [16.1K]

Answer:

B) Millcorp has a lawful innocent acquisition of a monopoly.

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2 years ago

Read 2 more answers

Dan and Emily have decided to start a new home inspection business. They have both worked in this industry as sole proprietors,

daser333 [38]

Answer: Partnership

Explanation: In simple words, partnership refers to an agreement between two or more independent parties to join their forces for achieving a common business goal with the ultimate objective of earning profit.

In the given case, Dan and Emily were sole proprietors and now they are joining their forces also the case states their new entity will not be a separate entity and both of the owners will be having unlimited debt.

Hence from the above we can conclude that this is a partnership business.

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3 years ago

When comparing cash management options, the higher the

marshall27 [118]

Answer:

Cost the lower the demand

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2 years ago

An establishment has three departments with variable costs as a percentage of sales revenue of 30 percent, 40 percent, and 50 pe

zalisa [80]

Answer:

60 percent

Explanation:

Contribution margin refers to the revenue a firm derives after deducting the variable cost it has incurred.

Contribution margin = Sales - Variable costs

Contribution margin or contribution to sales ratio represents the percentage of contribution a firm earns from the sale of it's output.

It is represented mathematically as,

= $\frac{Contribution\ margin}{Sales}$

Also, contribution margin ratio = 100 - variable cost ratio percentage.

Hence, contribution margin for three departments would be:

A = 100 - 30% = 70%

B = 100 - 40% = 60%

C = 100- 50% = 50%

This represents if sales revenue is 100, contribution margin earned is 70, 60 and 50 under three cases.

Since sales revenue in all three departments is the same, let us assume the sales revenue of a department as y.

$\frac{0.70y\ +\ 0.60y\ +\ 0.50y}{3y}$

Thus, weighted average contribution margin would be, 60 percent

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2 years ago