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3 years ago

Analyzing macroeconomic events with the IS curve (II):

Business

1 answer:

horsena [70]3 years ago

4 0

Answer and explanation:

This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.

This implies that the output and GDP will increase in the short run.

(check image file 1 attached)

The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.

This implies that the output and GDP will increase in the short run

(check the attached image file 2)

US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.

This implies that the output and GDP will decrease in the short ran.

(check image file 3)

Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.

This implies that the output and GDP will decrease in the short run.

check image file 4

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Match each region of Virginia to its main source of income,

Svetach [21]

Answer:

Piedmont ⇒ government jobs. The northern part of Virginia is loaded with federal government workers and federal agencies. Even though the Piedmont region is much larger, its main source of income comes from government jobs mainly located at the northern part (near Washington D.C.)

Appalachian Plateau ⇒ coal mining. Coal is one of Virginia's most valuable natural resources and it is mined in the Appalachian Plateau region (west of the state).

Blue Ridge Mountain ⇒ farming. The major economic activities in the Blue Ridge Mountain region of Virginia include farming, livestock, lumber and tourism.

Coastal Plain ⇒ tourism. The main sources of income include tourism, shipbuilding and military contractors.

Explanation:

Principal economic activities there include livestock raising, farming, tobacco growing, and lumber production. Commercial apple orchards are found in Virginia, Maryland, and Pennsylvania. The Blue Ridge is a major East Coast recreation area noted for its resorts and scenery. The Appalachian Trail winds atop the range.

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2 years ago

Read 2 more answers

Why does the cost of capital constitute a direct link between return on capital expenditure and the returns required by capital

Vinil7 [7]

Answer:

The overview of the statement is summarized below.

Explanation:

The capital structure seems to be the ratio of net required by investors toward about there capital expenditure. Investment return capital spending seems to be the return rate required for expenditure.
Returns required by financial institutions are much worse than the amount of capital, even before investors necessitate a reasonable level of profitability.

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2 years ago

During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everyth

Marta_Voda [28]

Answer:

The demand for pork would decrease and the equilibrium price of pork would decrease.

Explanation:

Substitute goods are goods that can be consumed in place of each other.

If the price of chicken falls, consumers would increase the quantity demanded of chicken and reduce their demand for pork. The fall in the demand for pork would lead to a leftward shift in the demand curve for pork. A leftward shift in the demand curve while the supply curve remains unchanged would lead to a fall in equilibrium price of pork.

I hope my answer helps you

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3 years ago

Importance of studying business

adelina 88 [10]

Business majors learn how to research information using quantitative skills, and then develop ideas based on that information to solve problems.

Business also involves people — customers and employees — so communication and interpersonal skills are vitally important as well.

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3 years ago

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Imagine that a major car company has been able to plan production to coincide with sales forecasts. As new inventory comes into

inessss [21]

Answer:

JIT production and JIT purchasing

Explanation:

JIT production and JIT purchasing under this process entity does not have extra material in stores and extra inventory produced.

as per the just in time

there is no benefit of holding inventory at stores

producing extra units does not add value they are useless until they are sold.

According to just in time inventory should be purchased when order has been placed and production process should start in order to meet the customers orders.

there are some conditions for this process

there should be very system to meet the order on time

there should be relaible production system units produced should not be poor quality goods

there should reliable suppliers to supply the material on time to meet the customers orders and avoid the stock out costs.

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3 years ago