Growth theory focuses on long run time horizons, whereas business cycles investigate short run time spans.
What is short run and long run in business cycle?
- Each nation’s economy varies between periods of extension and contraction.
- These changes are caused by levels of business, efficiency, and the whole request for and supply of the nation’s products and administrations.
- In the short-run, these changes lead to periods of development and retreat.
- But within the long-run, financial development can happen, permitting a country to extend its potential level of yield over time.
- Business cycles regularly care around short-term vacillations within the economy, that's five a long time or less.
- While growth hypothesis is more long-term arranged, they center on the long term enhancement of the economy.
- The time skyline for that's more than five a long time.
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Answer:
A a decrease in the amount of money they receive
Explanation:
If the seller levies the tax on the customer, the tax will increase the price of a product and in turn decrease the demand for the product. Decreased demand, in turn, will reduce the total revenue.
But if the seller levies the tax on themself, it will not increase the product price but lower the seller revenue directly. Either way, the revenue of the seller will be decreased.
Answer:
The correct answer is option d.
Explanation:
Fiscal policy is a tool to affect economic activities and GDP through changes in government spending and tax revenue. Contractionary fiscal policy is used to reduce economic activities. It is adopted in case of inflationary pressure.
Contractionary fiscal policy may involve a reduction in government spending which will eventually reduce aggregate demand. Or the government could increase the tax rates. This will cause the disposable income of the consumers to reduce.
As the purchasing power decreases with the decline in disposable income, consumer spending will get reduced as well. This will further cause the aggregate demand to decline.
The government can use either of them or both at the same time.
Answer: The debit column of the trial balance was overstated.
Explanation: from the question, the asset purchased with a value of $18,950 was overstated in the asset asset account.
On the purchase of the asset, the asset account is to be debited and accounts payable account is to be credited and not debited. So the debit side of the trial balance was overstated by $18,950 * 2 = $37,900.
