The term BUSINESS CYCLE is a popular way to describe the rescission-expansion pattern followed by the economy.
Answer:
Implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
Explanation:
Rent, salary, and other operating expenses are considered explicit costs. They are all recorded within a firm's financial statements, meaning they are present and clearly shown or reported as a separate cost. The main difference between the two types of costs is that implicit costs are opportunity costs, meaning that it is present but it is not initially shown or reported as a separate cost, while explicit costs are expenses paid with a company's own tangible assets. In other words, explicit costs are always shown, implicit costs are not, at least initially, exactly like the meaning words suggest.
The answer you are looking for is a planned economy
Answer: Option (c) is correct.
Explanation:
Correct option: Unplanned inventory investment.
Unplanned inventory investment is a component of investment spending. The other component of investment spending is planned inventory investment.
Unplanned inventory investment occurs when actual sales are more or less than the company's expected sales which results in unplanned changes occurred in the inventories.
Hence, in the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of Unplanned inventory investment.
The definition of money supply which include only items which are directly and immediately usable as medium of exchange is M1. Money supply refers to the entire stock of currency and other liquid assets that are circulating in a particular economy at a particular period of time.
M1 include cash and checking deposits which are very liquid in nature and are suitable as medium of exchange.
