Answer: Option(C) is correct.
Explanation:
Correct Option : A shift from LRAS 1 to LRAS 2 with higher output at a lower price level.
If there is a reduction in the tax, this will directly affect the disposable income of the people. Means that their disposable income increases with fall in the taxes.
Now, consumer will demand more because of higher disposable income and producers supply more as their cost of production decreases because of tax reduction.
So, LRAS shift rightwards from LRAS1 to LRAS2 in the diagram. And there will higher output and lower price level.
Answer:
U.S. citizens would purchase more goods from the E.U. for less money
Explanation:
In this scenario $1=€1, and when inflation occurs the purchasing power of the Euro will reduce.
One will need more euros to buy goods, for example if I buy a shirt for €3 the price may now be €5. So more euros are needed to buy the same goods.
Since the dollar did not experience inflation, its purchasing power will remain the same and stronger than the euro.
Thus the dollar will be able to now but more goods compared bro the euro.
Answer: Option (D) is correct.
Explanation:
Given that,
Ron's capital = $80,000
Stella's = $75,000
Tiffany's = $50,000
Income sharing ratio = 3:2:1
Tiffany is retiring from the partnership
Amount paid to Tiffany = $56,000
Bonus = Amount paid to Tiffany - Tiffany's capital
= $56,000 - $50,000
= $6,000
Above bonus is 1/6th of goodwill.
Therefore, the total amount of goodwill recorded would be:
Goodwill = 
= $36,000
Answer:
Opportunity cost
Explanation:
Opportunity cost is the sacrificed benefits in decision making. Making a decision involves selecting one option from several choices. The forfeited advantage from the next best alternative is the opportunity cost.
Monica has chosen to join college. She has sacrificed her job at the supermarket to make time for college. Her forfeited weekly pay from her job is the opportunity cost for joining college.
Answer:
the unemployment rate rises.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Potential GDP is the GDP of an economy when labour and capital are employed at their sustainable rate.
Real GDP has been adjusted for inflation. It reflects the value of goods and services produced in an economy.
When the real GDP of an economy grows more slowly than potential GDP, it means that the resources in the economy, labour and capital are not employed at their sustainable rate. This is referred to as output gap. As a result of the output gap, the unemployment level rises
