Answer:
the state of different areas or groups being joined together to form a single country or organization.
Explanation:
Answer: Income statement.
Explanation:
Also known as the profit and loss account, the income statement is a financial record that shows the amount of money that a business establishment receives and spends during a certain period (week, month or year). The profit or loss is determined by subtracting the expenses from the income during a period.
Answer:
has less of an effect on aggregate demand than if households view it as permanent
Explanation:
Tax Cut is an expansionary fiscal policy; where government uses its expenditure, receipt policy to increase aggregate demand.
A tax cut affects aggregate demand by increasing it, as it increases the disposable income & purchasing power. However: if households view a tax cut as temporary, it has less impact then that if it is viewed as permanent.
Such because, a tax cut considered temporary would be seen as a temporary increase in disposable income, purchasing power. However, consumers usually weigh marginal utility of a money unit gained less than marginal disutility of a money unit lost. Simply, increasing standard of living is easier, but degrading even temporarily improvised standard of living again is difficult. So, Consumers are averse to reduce their once raisen standard of living . This would make them change their aggregate demand less firstly itself, if the tax cut is considered to be temporary (to avoid disutility of degraded standard of living after tax cut reversal).
Answer:
C) It is a vertical line at $600 billion of GDP
Explanation:
Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.
Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.
In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.
