Because of the wealth effect, a rising aggregate price level "reduces" the purchasing power of wealth and therefore "reduces" the aggregate quantity of output demanded.
<h3>What is wealth effect?</h3>
According to the wealth effect, a behavioural economic hypothesis, customers will spend more money even if their income stays the same.
The effect of wealth effect on aggregate demand is-
- People will increase their consumption as their wealth rises. Thus, at lower price levels compared to higher price levels, the consumption component of aggregate demand will be stronger.
- A person's desire for inexpensive fast food is likely to decline as their income rises, but their desire for more costly steak may increase.
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The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)
Jan. 1 Inventory 1,500
Cash 1,500
<h3>
What are journal entries?</h3>
- A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
- An accounting journal, which shows a company's debit and credit balances, records transactions.
- The journal entry can be made up of multiple records, each of which is either a debit or a credit.
- Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.
Inventory purchase journal entry:
- Say you purchase $1,000 worth of inventory on credit.
- Debit your Inventory account $1,000 to increase it.
- Then, credit your Accounts Payable account to show that you owe $1,000.
- Because your Cash account is also an asset, the credit decreases the account.
Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)
Jan. 1 Inventory 1,500
Cash 1,500
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The question you are looking for is here:
The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be
(A) Jan. 1 cash 1,500
Account receivables 1,500
(B) Jan. 1 Purchases 1,500
Account payable 1,500
(C) Jan. 1 Inventory 1,500
Office Supplies 1,500
(D) Jan. 1 Inventory 1,500
Cash 1,500
Answer:
Ms. Fresh loss will be $800 and Basis in new shares is $3,950
Explanation:
Her Loss on sale of stock would be computed as:
Loss = Sale Value - Purchase price
= $4,800 - $5,600
= ($800)
As she repurchased the IBIS stock within the expiry of 30 days, she is not allowed to deduct the LTCL (Long Term Capital Gain ) from gain. So, LTCL will be $0.
The basis in new shares is computed as:
Basis = Previous loss + Price paid
= $800 + $3,150
= $3,950
Answer: C. Aggregate demand (AD); AD; leftward
Explanation:
If the expenditure decreases then the aggregate demand also decreases because you are not spending therefore, the output would decrease resulting in a decrease in aggregate demand. When the AD decreases, the AD curve will shift leftward. Demand curve shifts leftwards when there is a decrease in quantity and moves to the right when there is an increase in demand. The law of quantity demanded states there is an inverse relationship between price and output and when there is a leftward shift of the demand curve it means that the output has decreased from an increase in price.
Answer: a. an e-brand brand
Explanation:
An e-brand is one that provides just an online service for merchandise sales. These companies do not have physical locations but rather show you all that they sell on their websites and then when you purchase something, they deliver it as a physical good. The most popular example of such is Amazon.
The advantage of such brands is that they get to save on the rental and other property costs related to establishing brick-and-mortar stores because they are online.
