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KengaRu [80]
3 years ago
14

In the AS/AD model, as the price level falls, the holders of money become richer and buy more. This is one reason why the aggreg

ate demand curve is downward sloping.
A. True
B. False
Business
1 answer:
ioda3 years ago
4 0

Answer:

True

Explanation:

The statement is true.

Suppose a consumer purchases a bundle of goods, say 40 units with his given money income of $1000.

Now, if there is a fall in the price level of the goods then this will increase the purchasing power of the consumer and hence he will be able to buy more quantity of goods, say 60 units with the same level of money income i.e $1,000.

This illustrates that as the price level falls, the purchasing power of the consumer increases or we can say that holders of money become richer.

You might be interested in
PA8.
notka56 [123]

Answer:

750

Explanation:

The number of units in finishing department at the end of the month shall be calculated as follows:

Number of units transferred=Starting wip inventory+units received from molding department-number of units at the end of month.

Number of units at the end of month=Starting wip inventory-number of units transferred+units received from molding department

Number of units at the end of month=700-2,150+2,200

                                                             =750

6 0
3 years ago
Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
Jet001 [13]

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

  • Straight-line.
  • Double declining balance.
  • Units of production.
  • Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

6 0
3 years ago
In response to the increase in demand for organic foods, Wegmans, Inc., a regional supermarket, recently created organic food de
Ghella [55]

Answer:

The correct answer is letter "B": market opportunity.

Explanation:

A market opportunity represents an external factor -typically a problem- that potentially could create a business opportunity for a company. In some cases, the market opportunity pushes firms to innovate in products tailor-made to cover the need in question or to adapt an existing product to that need.

4 0
3 years ago
If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, wha
krek1111 [17]

The necessary adjusting entry to record inventory shortage would be:

“Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.”

Cost of Merchandise Sold is the cost of goods and services that correspond to sales made to customers. In this case, we need to decrease ending inventory by the quantity of these goods ($5,000) that either were shipped to customers or assigned as being customer-owned under a certain agreement. Meanwhile, the merchandise inventory is the cost of goods on hand and is available for sale ($5,000).

 

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6 0
3 years ago
Use the following information:Beginning cash balance on March 1, $72,000.Cash receipts from sales, $300,000.Budgeted cash paymen
Lynna [10]

Answer and Explanation:

The preparation of the cash budget for the month of March ended is presented below:      

                                              Cash Budget

Particulars                           Amount  ($)

Opening Cash Balance         72,000

Add: Cash Receipts from Sales 300,000

Total Cash Available           372,000

Less:

Cash Payments  

Purchases                             140,000

Salaries                                    80,000

Cash Expenses                     45,000

Repayment of Bank Loan      20,000

Total Payments                    -285,000

Closing Cash Balance              87,000

We simply deduct the all payments from the total cash available so that the ending balance of cash could come

8 0
3 years ago
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