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.
Answer:
Company's contribution margin ratio is <u>70.59%</u>
Answer:
$7,000 $-0-
Explanation:
For Rayburn to know what to record from the cash distribution, he will need to subtract his basis in the stock from the cash distribution he receives
Therefore $22 000 - $15 000 = $7 000.
And Newcastle has no income =$-0-
Answer:
125 birdhouses per month
Explanation:
Barney=150 birdhouses
Total product=150 birdhouses
If Barney hires Fred
Fred =125 birdhouses
Total product=150+125
=275 birdhouses
Marginal product can be defined as a change in output as a result of a change in variable inputs
It can be calculated as follows
Marginal product=change in total product/change in variable inputs
=275-150/1
=125/1
=125 birdhouses per month
Answer:
Annual demand (D) = 1,600 units
Ordering cost per order (Co) = $16
Holding cost per item per annum (H) = $8
EOQ = √2Dco
H
EOQ = √2 x 1,600 x $16
$8
EOQ = 80 units
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
