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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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Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real est
Wittaler [7]

Answer:

The correct answer is C

Explanation:

The seller consideration is the consideration which is defined as to take the property off the place as well as the market it into the escrow.

For example, if the buyer wants to bought the house, then the buyer will provide an earnest amount of money deposit (it will be the consideration of the buyer), and the seller would agree to sell the home to the buyer (it is the seller consideration).

So, in the agreement of sale and the purchase of the real estate, the seller consideration is to give the property to the buyer.

3 0
3 years ago
Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Tra
Marizza181 [45]

Answer:

It is $9,000 (B)

Explanation:

Total paid dividends paid = $60,000

Return on Investment = $60,000 *15%

                                    =$9,000.

Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.

Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).

3 0
3 years ago
In its first month of operations, Bethke Company made three purchases of merchandise in the following sequence: (1) 300 units at
Annette [7]

Answer:

(1) $2,720

(2) $2,220

Explanation:

Given the following sequence:

300 units at $6, 400 units at $7 and 200 units at $8

(1) FIFO method

Ending inventory = 360 units

Cost of ending Inventory:

= 200 units at $8 + 160 units at $7

= 200 × $8 + 160 × $7

= 1,600 + 1,120

= $2,720

(2) LIFO method

Cost of ending Inventory:

= 300 units at $6 + 60 units at $7

= 300 × $6 + 60 × $7

= 1,800 + 420

= $2,220

4 0
3 years ago
In Clemens v. McNamee, major league pitcher Roger Clemens sued McNamee, a trainer, over McNamee's statements to investigators an
schepotkina [342]

The court decided in favor of the McNamee because he did not have sufficient minimum contacts to establish personal jurisdiction, since Texas was not the focal point of the story.  

Explanation:

The court gave his final decision in favor of McNamee. Clement has not received decision in favor of his though he suffered from distress and damage of his reputation in Texas. McNamee illustrated that he gave steroids to Clements who was an Texas citizen

Mc Namee was a citizen of New York. He did not have sufficient minimum contacts to establish personal jurisdiction. McNamee was a trainer. According to the national magazine there was no such detail of defamation was provided.

5 0
2 years ago
Capital goods
Anika [276]
Capital goods are those good used to make consumer goods and services.
Thus answer is D

Capital goods is also known as intermediate goods, durable goods or economic capital.
6 0
3 years ago
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