Answer:
False
Explanation:
When the government increases spending, aggregate demand increases. This leads to increase in demand of money.
If federal reserve holds money supply constant in this case, interest rate will increase. This will lead to 'crowding out' of private investment; & the total effect of government investment increase on AD is lesser.
If government keeps the interest rate constant, the private investment 'crowding out' effect will not occur. No private investment crowding out effect, & the total effect of government investment increase on AD is lesser.
So; The effect on aggregate demand would be <u>lesser</u> if the Federal Reserve held the money supply constant in response than if the Fed were committed to maintaining a fixed interest rate.
Answer:
Rent Expense (Dr.) $5,000
Cash (Cr.) $5,000
Inventory (Dr.) $35,380
Accounts Payable Martin Co. (Cr.) $35,380
Accounts Receivable Korman Co. (Dr.) $62,000
Sales (Cr.) $62,000
Cost of Goods Sold (Dr.) $48,500
Inventory (Cr.) $48,500
Explanation:
Advertising Expense (Dr.) $21,800
Cash (Cr.) $ 21,800
Cash (Dr.) $62,000
Accounts Receivable Korman Co. (Cr.) $62,000
Customer Refund Payable (Dr.) $31,500
Cash (Cr.) $31,500
Sales Salaries Expense (Dr.) $12,000
Office Salaries Expense (Dr.) $ 38,000
Cash (Cr.) $50,000
Store Supplies Expense (Dr.) $2,200
Cash (Cr.) $2,200
The situation where the actual output (where AD and SRAS intersect) is less than LRAS, this is an example of an <u>inflationary gap</u>.
<h3>What is an
inflationary gap?</h3>
An inflationary gap refers to the difference between the real GDP and the full-employment real GDP. It is also called an expansionary gap.
The recessionary gap is when actual output (where AD and SRAS intersect) is <u>less</u> than LRAS.
<h3>What is
recessionary gap?</h3>
A recessionary gap refers to the situation that occur when the country's real GDP is lower than its GDP at full employment.
Read more about inflationary gap
<em>brainly.com/question/15707182</em>
Answer:
See below
Explanation:
Assets, Liabilities, and Equity form the basis for preparing the balance sheet. They make the accounting equation of Assets= Liabilities + Equity.
<u>Assets </u>are the valuables a business owns. They can be in the form of cash, money in the banks, financial instruments, properties, machines, or motor vehicles.
<u>Assets will be</u>
<u>Liabilities </u>are what the business owes to third parties and supplies. Liabilities are usually in the monetary form, such as loans, rent, and accounts payable.
<u>Liabilities</u>
<u>Equity</u> is the owner's contribution to the business. They include capital and retained earnings.
Equity
- retained owners
- personal investment earnings,
Answer: inefficient because Steven and Ingrid could have made a mutually beneficial trade.
Explanation:
Regarding the question, Ingrid was waiting for "Mamma Mia!" show to come to town; it eventually came with tickets cost of $60. Even though Ingrid's reservation price was $75, he was not able to get a ticket as they had been sold out.
On the other hand, Steven got a ticket for $60 even though his reservation price for the ticket was $65. Steven eventually attended "Mamma Mia!" show while Ingrid does not. This is an inefficient situation because Steven and Ingrid should have made a mutually beneficial trade which could have happened if Steven had sold Ingrid the ticket for the show for $70 and they would have been better off.