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Agata [3.3K]
3 years ago
7

The determinants of aggregate demand Multiple Choice explain shifts in the aggregate demand curve. explain why the aggregate dem

and curve is downsloping. include input prices and resource productivity. demonstrate why real output and the price level are inversely related.
Business
1 answer:
tamaranim1 [39]3 years ago
3 0

Answer:

shifts in the demand curve

Explanation:

Aggregate demand is total value of goods and services demanded at a particular time in an economy. It indicate goods and services that will be bought at different prices.

The determinants of aggregate demand are factors that could cause shift in aggregate demand curve either to the left or right. A shift in aggregate demand curve to the right means an increase in quantity demand while a shift to the left means a decrease in quantity demand at every price level.

The determinants are ;

Price of the goods - An increase in price of the goods itself will bring about shift in the demand curve to the left and vice versa

Consumer expectations- When consumers expect price of goods to be high, demand curve would shift to the right and vice versa.

Price of related goods- An increase in price of related or complementary good would cause the demand to either shift to the left or right.

Income of the buyers - Increase in come of buyers would shift the demand curve to the right and vice versa.

Taste or preference of consumers- When consumer's preference shift in favour of a product, demand for such product would increase thus shifting the demand curve to the right.

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Production equipment costing $500,000 has been purchased by a contract manufacturing company to meet the specific needs of a cus
irina1246 [14]

Answer:

Short-cut IRR = 18.75%

The company has not reached their rate of return goal on this contract and investment.

Explanation:

a) Data and Calculations:

Cost of production equipment = $500,000

Qualified investment tax credit (ITC) = 10% = $50,000 ($500,000 * 10%)

Contract period = 4 years with 4 years extension on renewal

Income tax rate for the company = 40%

Expected after-tax rate of return = 12%

Expected before-tax rate of return = 30% (12%/40%)

Annual income generated by the equipment = $150,000 for 4 years

Salvage value at the end of 4 years = $200,000

Short-cut IRR = 100%, divided by the number of years * about 75-80%

= 100%/4 * 75%

= 18.75%

8 0
3 years ago
Cheyenne Corp. purchased a piece of equipment for $58,800. It estimated a 9-year life and $3,400 salvage value. At the end of ye
bogdanovich [222]

Answer:

the revised depreciation is $ 3,753

Explanation:

<em>Straight Line Method of Depreciation charges the same amount of depreciation over the useful life of the asset.</em>

Depreciation Charge (Straight line) = (Cost - Salvage Value) / Useful life

Year 1

Depreciation Charge = ( $58,800 - $3,400) / 9 years

                                   = $6,156

Year 2

Depreciation Charge = $6,156

Year 3

Make the adjustment as if the adjustment happened at the beginning of the year

Make the following changes

(1) Adjast the Depreciable Amount (numerator)

(2) Adjast the Useful life (denominator) to 11 years

Depreciation Charge = (Cost - Previous Depreciation Charges - New Residual Value) / Revised Number of Useful life

Depreciation Charge = ($58,800 - $6,156 - $6,156 - $5,200)/ 11 years

                                   = $ 41,288/ 11 years

                                   = $ 3,753

5 0
3 years ago
1. Put the steps for creating a Trial Balance in the correct order.
Setler [38]
C.prepare a list of ledger accounts used in the business
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a.total the debit column of the trial balance and then total the credit column of the trial balance
d.transfer.the ledger accounts To a trial balance or list the balance account. if the ledger account shows a debit,balance the debit side of the trial balance.if the ledger account shows a credit,balance the credit side of the trial balance.
8 0
3 years ago
The types of job-specific knowledge you need to perform well in a specialized field, known as _______ skills, appear to be most
myrzilka [38]

Answer: technical

Explanation:

6 0
3 years ago
Two individuals who were previously sole proprietors form a partnership. Property other than cash that is part of the initial in
UNO [17]

Answer:

D) Property's fair value at the date of the investment.

Explanation:

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Therefore, correct statement is

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7 0
3 years ago
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