1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KiRa [710]
3 years ago
10

g A decrease in aggregate demand will cause prices to fall according to classical economists, and unemployment to increase accor

ding to Keynes. prices to fall and unemployment to increase according to both classical economists and Keynes. aggregate supply to fall according to classical economists, and prices to fall according to Keynes. aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.
Business
1 answer:
Mashcka [7]3 years ago
7 0

Answer:

prices to fall according to the classical economists and unemployment to increase according to Keynes.

Explanation:

The classical economists believes that a decrease in aggregate demand for goods produced would being about fall in the prices of such goods. What this implies is that as more goods are produced, if such production is not backed by corresponding demand by consumers, the prices of such goods produced will eventually fall because supply is greater than demand.

For the Keynes, their argument is that a decrease in aggregate demand will cause unemployment to increase. This is because owners of businesses or employers would lay off their employees when goods produced exceeds the demand for such production by consumers. Here, owners of businesses pays their employees through sales of goods produced. So, when the goods produced are not purchased, then there will be excess availability of such goods; hence no sale or profit, from which salaries would be paid. The next step is to start laying off employees because employers cannot cover their running costs.

You might be interested in
At Sunland Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciat
e-lub [12.9K]

Answer:

B. $1673920

Explanation:

First calculate Total loss

$2000000 loss from disposal of a component of the business and loss of $92400 from strike by the employees of a supplier

$2000000 + $92400 = $2,092,400

20% of the loss =

20% × $2,092,400

= $418,480

Therefore the effect of these events and transactions on 2020 net income net of tax would = Total loss - 20% of total loss

$2,092,400 - $418,480

= $1,673,920

4 0
3 years ago
A typical grocery store in the United States may sell oranges grown primarily in California during part of the year and oranges
Rama09 [41]

In United States, the oranges are available round the year because the grocery stores sell oranges that are grown in locations with similar climates but different growing seasons.

<u>Explanation</u>:

Orange is a seasonal fruit. The growth of orange can be witnessed from November to April in the United States of America. The supply of orange will reach its peak during January-March.

Oranges are good source of vitamin C and are rich in nutrition. The antioxidant in the orange helps in lowering the risk of heart disease and kidney stones.

In United States, the oranges are available round the year because the grocery stores sell oranges that are grown in locations with similar climates but different growing seasons.

4 0
3 years ago
Problem 16-15 MM and Taxes [LO2] Meyer &amp; Co. expects its EBIT to be $111,000 every year forever. The firm can borrow at 8 pe
Aleks04 [339]

Answer:

a) 12.87%

b) 11.03%

Explanation:

EBIT with no debt = $111,000

net income = $111,000 x (1 - 22%) = $86,580

total value of the firm with no debt = $86,580 / 12% = $721,500

value of the firm after debt is taken = $721,500 + ($165,000 x 22%) = $757,800

debt to equity ratio after debt is taken = $165,000 / ($757,800 - $165,000) = 27.834%

new cost of equity (Re) = 12% + [(12% - 8%) x 27.834% x (1 - 22%)] = 12.87%

WACC = (0.72166 x 12.87%) + (0.27834 x 8% x 0.78) = 9.288% + 1.737% = 11.025$ = 11.03%

4 0
3 years ago
An accountant agreed to perform a compilation of a company's financial statements under Statements of Standards for Accounting a
LekaFEV [45]

Answer: The following would the accountant do related to the compilation engagement: <u><em>Issue a compilation report even though review procedures were performed on the engagement.</em></u>

Under Statements of Standards for Accounting and Review Services (SSARS), the accountant decided to perform some analytical procedures.

<u><em>Therefore, the correct option is (d)</em></u>

5 0
3 years ago
The American Red Cross and the American Medical Association are nonprofit businesses. This is because they: A. plan to make a pr
MrRa [10]

Answer:B  exist to benefit a cause but not to make a profit.

Explanation:

They are to provide services which are useful to the members of the society at large.  They exist to promote the interest of members of the public which are social in nature.  With a view to ensure the smooth running of the organisation some individuals are elected to run the organisation in the position of chairman, secretary, and treasurer.  They do prepare receipt and payment account which is similar to cash account while some do prepare income and expenditure account which is similar to profit and loss account.

5 0
3 years ago
Other questions:
  • What are the major functions of the entrepreneur?
    11·1 answer
  • Bennett Co. has a potential new project that is expected to generate annual revenues of $266,600, with varlable costs of $146,00
    6·2 answers
  • Which targeting option allows you to re-engage with people who visited your site by serving them ads containing the products the
    5·1 answer
  • Semiotics refers to a field of study in marketing linguistics that identifies the connotative meanings behind words in order to
    5·1 answer
  • Corporate structure may be defined as
    14·1 answer
  • Executives at Southwestern Construction have noticed that the company's construction team in the Phoenix office is more efficien
    11·1 answer
  • A company's $100, 8% preferred is currently selling for $85. What is the company's cost of preferred equity?
    13·1 answer
  • B was 42 when the life insurance policy was issued. 42 is referred to as the ______ age of the policy. A
    5·1 answer
  • Lower-level managers are empowered to make decisions in a ______ organization, which can ________ motivation and job satisfactio
    13·1 answer
  • cost reductions stemming from strategic fit along the value chains of related businesses can result in multiple choice economies
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!