Answer:
$1.25
Explanation:
According to the quantity theory of money
money supply x velocity = real gdp x price
7 x 60 = 336 x p
p -1.25
velocity measures how fast money changes hand in the economy
real GDP is gdp adjusted for inflation
Answer: -9
Explanation:
The Tax multiplier of a nation shows how much the aggregate demand of an economy will change if there is a change in taxes.
It is calculated by the formula:
= -MPC / ( 1 - MPC)
= -0.9 / (1 - 0.9)
= -9
<em>If taxes are reduced, aggregate demand would increase by 9 times. </em>
Answer:
$155,000
Explanation:
Given the information above,
Depreciation charge (straight line) = (Cost - Residual value) ÷ Estimated useful life
Therefore,
2021 Depreciation charge = ($2,635,000 - $0) ÷ 17
= $155,000
The journal entry to correct the error will include a credit to accumulated depreciation of $155,000
Answer:
a. Price and marginal revenue are equal at all levels of output.
Explanation:
Purely competitive seller price is the total revenue of the seller, which is equal to market price of product multiplied by total number of output. In free competitive market, In pure competitive market, seller see a perfect elastic demand, so they sells any quantity of goods at market price. Therefore, average revenue and marginal revenue are equal to the market price. In this case, seller cannot make more profit by minimizing cost as they have to sell the units of goods at market price, however, in short run they could maximize the profit by reducing the variable cost.
