The increased pessimism will affect the aggregate demand curve by: shifting the aggregate demand curve to the left.
<h3>What is Aggregate Demand Curve?</h3>
An aggregate demand curve can be described as curve that shows the total spending that is made on domestic goods and services based on different price levels.
When the aggregate demand curve shifts to the right, it means demand is increased. However, wen aggregate demand curve shifts to the left, it means demand decrease.
Recession that happened in 2007-2009 that made many consumers pessimistic about their future incomes discourages buying. This leads to a decrease in demand which will make the aggregate demand curve to shift to the left.
Therefore, the increased pessimism will affect the aggregate demand curve by: shifting the aggregate demand curve to the left.
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Answer:
Year 2= $3,333.33
Explanation:
Giving the following information:
A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.
To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*[(24,000 - 9,000)/6]= 5,000
Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33
Answer:
Find in the excel file attached detailed adjusting entries required for all transactions in the question.
Explanation:
Please note the analysis of each transaction done under the heading "particulars".
Answer:
$270,000
Explanation:
Data provided
Quantity of products = $280,000
Total fixed costs = $800,000
Unit sales price = $16
Variable cost = $12
The computation of units must be sold is shown below:-
Contribution per unit = $16 - $12
= $4 per unit
Units must be sold = (Quantity of products + Total fixed costs) ÷ Contribution per unit
= ($280,000 + $800,000) ÷ $4
= $1,080,000 ÷ $4
= $270,000
