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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.

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Which of the accounts are decreased on the debit side and increased on the credit side?
Allushta [10]

Answer: D. Liabilities, stockholders' equity, and revenues.

Explanation: In case of liabilities and equity increase by credit because they are the funds with which the company has to finance the assets according to the balance sheet. Example: Accounts payable suppliers, share capital of shareholders.

Revenues correspond to the income statement and also increase in credit. Example: Revenue from sales, income from commissions.

7 0
4 years ago
Consider each of the following scenarios. For each, would it cause a shift in demand, a shift in supply, or neither a shift in d
Andreyy89

If Adidas lowers its price, there would be a shift to a shift in demand to the left.

An increase in the wages of labor would lead to a shift in supply to the left.

As a result of the report, there would be a shift in demand to the right.

The arrest of the celebrity will neither shift demand or supply.

A decrease in the price of Adidas' shoes will neither shift demand or supply.

<h3>What cause a change in demand?</h3>
  • A change in consumers' expectation : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

  • A change in the taste of consumers : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

  • A change in consumer's income: : when there is a favourable change in this factor, the demand curve would shift to the right. When the change is unfavourable, there would be a shift to the left.

  • A change in the price of substitute goods: when the price of the substitute good increases, the demand for the good would increase. The opposite is the case when the price of the substitute good decreases.

Here is the complete question:

Nike is wondering how Adidas's decision to lower its prices will affect Nike.

2. Apple, which makes the iPhone, is forced to pay its workers higher wages.

3. A new report indicates that eating hot dogs can prevent cancer.

4. Adidas decides to lower the prices of its shoes.

5. A celebrity who endorses Subway is arrested.

For more information about the change in demand, please check: brainly.com/question/25871620

6 0
3 years ago
3. Once you turn 18, you should regularly check your credit report...
Mazyrski [523]

Answer:

A - For errors or signs of identity fraud

Explanation:

That is the correct answer, good luck, and have a good day.

7 0
2 years ago
What item(s) are tax deductible for consumers who are buying or renting a home?
olasank [31]
Being a new home owner, I can tell you a few tax deductibles. They are:
1. Mortgage interest
2. Property taxes
3 Moving costs

4 0
4 years ago
Discuss five ways negotiators can get along in order for their cultural background not to affect their bargaining process?
MArishka [77]

Answer:

The following five ways of overcoming intercultural barriers will help you make the most of your cross-cultural business negotiations.

1. Research the other party's culture. ...

2. Consider the individual. ...

3. Build bridges across cultures. ...

4. Consider the broader context. ...

5. Take steps to reduce stress.

3 0
3 years ago
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