Answer:
a. AD curve will shift to the right
b. AD curve will shift to the left
c. Movement along the AD curve.
Explanation:
a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.
b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.
c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.
The answer is False
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Answer:
The price o the machine is = $268,157.69
Explanation:
<em>The Net present value is the difference between the present value (PV) cash inflows and the initial cost of the investment.</em>
<em>PV of cash inflow =</em>
90,000× (1- (1.1)^(-7) )/0.1
= 438,157.69
NPV = PV of cash inflow - cost of the machine
<em>Let represent cost of the machine as " y "</em>
170,000 = 438,157.69 - y
y = 438,157.69- 170,000
y = 268,157.69
The price o the machine is = $268,157.69
Answer:
a steering wheel in an automobile.
Explanation:
Abba Lerner a twentieth-century economist, is widely known for his suggestion of the utilization of fiscal policy and monetary policy as a form of Keynesian economics. In his analysis, he declared that fiscal and monetary policy is analogous to a steering wheel in an automobile.
Hence, the correct answer to the question is "a steering wheel in an automobile."
Answer:
Price are equal
Explanation:
In the case when you want to maximize your utility and a consumer having a fixed type of budget wants to purchase the quantities of the goods so here the ratio of the marginal utility for each goods to its price would be equal
So according to the given situation the price are equal would be considered and relevant too
