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Vikki [24]
3 years ago
6

When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending and a recess

ion results: a. A self-correction has occured b. An adverse aggregate supply shock has occired c. A coordination failure has occured d. A real-bussiness-downturn has occured
Business
1 answer:
yKpoI14uk [10]3 years ago
4 0

Answer: Option (C) is correct.

Explanation:

Correct option: A coordination failure has occured.

When it was observed that most of the consumers and firms decreases their spending because they expect that some other consumers and firms decreases their consumption or spending and this will lead to a recession in an economy. So there is a coordination failure has occured.

Coordination failure is generally occurs when some of the firms can achieve a desirable equilibrium but unable to achieve it because they are not be able to coordinate with their decision making.

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4 0
4 years ago
In a planned economy, prices of commodities are controlled by _________.
AnnZ [28]
<h3>Answer:</h3>

C. The government

<h3>Explanation:</h3>

Vocabulary

First, it is important to define the key terms in the question and answers.

  • Planned Economy- A planned economy is an economy where the investments and capital are allocated by the government.
  • Commodities - Commodities are economic goods that have real value due to their real-life usefulness (like lumber) or rarity (like gold).

How Planned Economies Work

As its name suggests, a planned economy plans the economy out and the price of goods within the markets. These plans are created by the government. This means that private businesses, consumers, and supply/demand do not control prices. Only the government can do that because the government has full control of planned economies. This is the reason that planned economies are also called command economies because the economy is commanded by the government.

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2 years ago
When Padgett Properties LLC was formed, Nova contributed land (value of $340,500 and basis of $85,125) and $170,250 cash, and Os
max2010maxim [7]

Answer:

See the explanation below:

Explanation:

a. How is the land recorded for § 704(b) book capital account purposes? For § 704

Debit cash with $170,250

Debit land with $340,500

Credit Nova's Capital account with $510,750

b. What is Padgett's tax basis in the land?

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Built in gain = $340,500 - $85,125 = $255,375

Gain from sale = $510,750 - $340,500 = $170,250

Share of gain from sale = $170,250 * 50% = $85,125

Gain to report by Nova = Built in gain + Share of gain from sale = $255,375 + $85,125 = $340,500

Gain to report by Oscar = Share of gain from sale = $170,250 * 50% = $85,125

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