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3 years ago

Why the aggregate demand curve slopes downward

Business

1 answer:

Serggg [28]3 years ago

4 0

Answer:

1. As the price level rises, the cost of borrowing money will rise, causing the quantity of output demanded to fall.

This phenomenon is known as the Interest rate effect.

When price levels rise, people will have to spend more on goods and services and hence save less. As they save less there'll be less loanable funds in the economy which will force interest rates (cost of borrowing) up. As there are less loans to give out and higher rates, people will borrow less and as a result will not demand as much because they can't afford it.

2. Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar to rise in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will therefore fall, and the number of foreign products purchased by domestic consumers and firms (imports) will rise. Net exports will therefore fall, causing the quantity of domestic output demanded to fall. This phenomenon is known as the exchange rate effect.

As interest rates rise in the Economy, it will make the country a more attractive place to invest for foreigners so they will demand more of the local currency. This will cause a rise in the value of the domestic currency. This will make the exports of the country more expensive so less people outside will buy it but it will also make foreign products seem cheaper so the local consumers will import more.

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WRITE A IMPORTANT SENTANCE ABOUT EACH PARAGRAPH AND NUMBER IT PLS AND ILL GIVE YOU BRAINLIEST....DONT RESTATE THE SENTANCES

erastova [34]

Answer:

1. Omar Ndiaye is a basketball player at Northern Arizona University. He is just as skillful as his teammates, but the only difference is that he plays with one hand.

2. Basketball is a sport with 5 players on the court on each team. Basketball players have to dribble, pass, and shoot, as well as having good reactions and good communication skills. It can be found in Australia, Canada, Germany, Mexico, the U.S., as well as many other countries.

3. The chances of Ndiaye becoming a basketball player was particularly low because he was born without a right hand. But that never stopped him.

4. People are amazed at the things he can accomplish with one hand.

5. As a kid, Ndiaye tried out a lot of sports including, soccer and swimming. He also tried basketball trying to figure out ways on how to play it with one hand.

6. Without thinking too much about how to do it, he just did it.

7. He practiced over and over until it became second nature to him.

8. All the practice did pay off. He was one of the best where he lived. Yet again, people were mesmerized.

11. Ndiaye supported his teammates by being him.

12. When people see Ndiaye working hard with one hand, it motivates them to work harder.

13. He also inspires the kids at youth basketball camps.

14. People questioned Ndiaye about how he did it, he says, "I always let them know if they have confidence in themselves they can do anything."

15. After college, Ndiaye plans to become a motivational speaker because he has a lot to tell people with his story.

Explanation:

Hope this helps. Sorry, it took a while. :)

5 0

3 years ago

Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which

VladimirAG [237]

Answer:

The marginal benefit from selling the vane without restoring it is $200.

Explanation:

Marginal benefits are the extra income a company can get from selling one additional unit of production.

Zane had already spent $250 in purchasing the vane and the restoration process.

Zane has two options:

Sell the vane as it is for $200.
Keep restoring the vane, spend $200 more and sell the vane for $500.

If Zane decides to sell the vane as it is, his marginal benefit will be $200. That would not be enough to cover his costs, this transaction will result in a $50 loss.

If Zane decides to continue the restoration, then his marginal costs will be $200 extra, but his marginal benefit would be $500. If he chose this option he could end up earning a $50 profit.

8 0

3 years ago

An obstacle that prevents movement or progress in communication is called

alexgriva [62]

Answer:

D. communication barrier

3 0

2 years ago

Problem 1

zloy xaker [14]

Answer:

How to produce resources

5 0

3 years ago

g The Village of Lake George decided to establish an internal service fund to account for the operations of a Print Shop. The Pr

Natali5045456 [20]

Answer:

Check the explanation

Explanation:

General Journal

Ref. Account Title & explanation Debit Credit

a) Cash $1,200,000

Contribution $400,000

Long term liability $800,000

(To record receipt of fund )

b) Equipment $890,000

Cash $890,000

(To record purchase of equipment)

c) Supplies $120,000

Accounts payable $30,000

Cash $90,000

(To record purchase of supplies)

d) Cash $350,000

Accounts receivable $50,000

Sales $400,000

(To record sales )

e) Supplies expenses $73,000

Supplies $73,000

(To record supllies expenses)

f) Salaries and wages expenses $19,000

Cash $19,000

(To record salaries and wages expenses)

Utilities expenses $3,000

Cash $3,000

(To record utilities expenses)

g) Depreciation expenses $80,000

Accumulated depreciation-Equipment $80,000

(To record depreciation expenses)

h) Long term liability $200,000

Cash $200,000

(To record payment of instalment of advance)

Ref. CASH ACCOUNT Debit Credit

a) Contribution $400,000

a) Long term liabilities $800,000

b) Equipment $890,000

c) Supplies $90,000

d) Sales $350,000

f) Salaries & wages expenses $19,000

f) Utilities expenses $3,000

h) Long term liabilities $200,000

Balance $348,000

TOTAL $1,550,000 $1,550,000

Closing balance brought forward $348,000

TRIAL BALANCE

Account Debit Credit

Cash $348,000

Contribution $400,000

Long term liabilities $600,000

Equipment $890,000

Supples $ 47,000 (120000-73000)

Accounts payable $30,000

Accounts receivable $50,000

Sales $400,000

Supplies expenses $73,000

Salaries and wages expenses $19,000

Utilities expenses $3,000

Depreciation expenses $80,000

Accumulated depreciation-equipment $80,000

TOTAL $1,510,000 $1,510,000

INCOME STATEMENT

Contribution $400,000

Sales $400,000

Total income $800,000

Expenses:

Supplies expenses $73,000

Salaries and wages expenses $19,000

Utilities expenses $3,000

Depreciation expenses $80,000

Total expenses $175,000

Net Income $625,000

BALANCE SHEET

ASSETS:

Cash $348,000

Supples $ 47,000

Accounts receivable $50,000

Equipment $890,000

Accumulated depreciation ($80,000)

Total assets $1,255,000

Liabilities:

Accounts payable $30,000

Long term liabilities $600,000

Net assets $625,000

Total Liabilities & net assets $1,255,000

3 0

3 years ago