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julsineya [31]
2 years ago
11

Which best describes what is represented in the business cycle model? the interactions between producers and consumers the chang

e in production cost macroeconomic trends supply and demand trends
Business
2 answers:
schepotkina [342]2 years ago
7 0

<u>The option C is correct. Macroeconomics trends are represented in the business cycle model.  </u>

Further Explanation:

Business cycle model:

The business cycle model refers to the model in which the change in aggregate income and the unemployment for the nations are taken into consideration. The model tells us about the change in aggregate income and the change in the unemployment rate. The country does use the business cycle model to evaluate the country's growth rate.  

Justification for the correct and incorrect answer:

A.

The interactions between the producers and consumers: This option is incorrect.

Business does not directly consider the producer and consumers. The interaction of producer and consumer is included in the production process.  

B.

Change in production cost: This option is incorrect.  

The change in production cost, it only affects the particular company. The change in production cost does not affect the whole nations.  

C.

Macroeconomics trends: This option is correct.

Macroeconomics deals in aggregate demand, aggregate supply, unemployment, aggregate for the whole nation.  The trends of the macroeconomics can be used for representing the business cycle model. This option is correct.  

D.

Supply and demand trends: This option is correct.

The supply and demand for particular goods can not be used to represent the business cycle model. This is not the correct option.  

Learn more:

1. Learn more about the elasticity of demand

<u>brainly.com/question/6255841 </u>

2. Learn more about unemployment

<u>brainly.com/question/11030926 </u>

3. Learn more about demand and supply diagram

<u>brainly.com/question/2195487 </u>

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Business cycle model

Keywords:

business cycle model, interactions, change in production cost, macroeconomics trends, supply and demand trends, producer, consumers, aggregate demand, aggregate supply, unemployment, aggregate income, and change.

leva [86]2 years ago
4 0

Macroenomoc trends best describes what is represented in the business cycle model.

The business cycle, also known as the economic cycle or trade cycle describes the rise and fall in production output of goods and services in an economy. The rise and fall is measured using rise and fall in real – inflation-adjusted – gross domestic product (GDP).

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Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati
Tom [10]

Answer:

Following are the solution to the given points:

Explanation:

For point a:

After-tax profit for each country.

For Country X:

Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\  

Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000

For Country Y:

Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,800,000\\\\

Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  2,200,000\\\\Tax\  [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,800,000

For point b:

For Country X:

Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].

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