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N76 [4]
3 years ago
10

If an economy experiences a decrease in aggregate demand due to a decline in consumer confidence and output falls below potentia

l GDP, which of the following is likely to occur?
a. rise in unemployment
b. more consumption and less saving
c. immediate adjustment back to potential GDP
d. increase in price inflation
Business
1 answer:
attashe74 [19]3 years ago
7 0

Answer:

a. rise in unemployment

Explanation:

Aggregate demand is a term describing the total demand for goods and services in the economy. If the aggregate demand rises, it means the country's population is requesting more goods and services.  Production will increase to meet the new demand, and consequently, the GDP will grow.

Should the economy experience a fall in aggregate demand, industries will  reduce the level of production.  GDP is the total production in the economy. If the output is below the potential GDP,  it implies a decline in production. The economy is slowing down. The manufacturing and service sectors will cut down production. Reduction in production mean industries will lay-off employees. Unemployment will rise as industries will not create employment opportunities for job seekers.

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If,at the current level of output, a firm's average cost is greater than its marginal cost, then:
nata0808 [166]

e)average fixed cost must be constant

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The Baldwin Company currently has the following balances on their balance sheet: Total Assets $167,705 Total Liabilities $69,461
Andrews [41]

The common stock next year would be $32546

The total assets (current) =  $167,705

Total assets (next year) = $167,705 +  $55,000 = $222705

The total liabilities (current)=  $69,461

The total liabilities (next year)=  $69,461

The total retained earnings (current) = $88,498

The total retained earnings (next year) = $88,498 + 44,200 - $12000 = $120698

<u>Common stock (current)</u>

=  $167,705 - $69,461-$88,498

= $9746

<u>Common stock (next year)</u>

= $222705 - $69,461 - $120698

= $32546

The common stock next year would be $32546

Read more on common stock:

brainly.com/question/25749153

5 0
2 years ago
What are the process of a business transaction
sdas [7]

Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services. Business transactions can be as simple as a cash purchase or as complex as a long-term service contract .

Explanation:

5 0
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For the following transaction, answer the questions that follow in accordance with the rules of journalizing and the double-entr
Angelina_Jolie [31]

Answer and Explanation:

Given that

Drawings by owner for $1,500

The journal entry is

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       To cash $1,500

(being the amount withdrawn is recorded)

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c. The drawing account is increased and the cash account is decreased

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Which of the following statements about retirement planning trends is correct?
oee [108]

Answer: the Correct answer is Option D

D. 2 and 3

Explanation:

2. The change in the number of defined benefit plans has resulted in a shift in risk from employers

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