Answer:
The correct answer is the letter C. by showing that if total spending in the economy grows faster than total production, prices will rise
Explanation:
The dynamic aggregate supply and demand model explains inflation as follows: In the short run, an economy's production capacity is limited to existing factors of production, ie there is little room to increase the amount of capital and thus the supply of goods and services. Thus, if aggregate demand, that is, the economy's consumption capacity grows faster than production capacity, that is, to supply goods and services, there will be demand inflation, which happens when aggregate consumption pressures aggregate supply, raising price levels.
Answer:
$2,250,000
Explanation:
The computation of retained earnings is shown below:-
Retained earnings 31/1/17 = Retained earning 1/1/17 + Net income of current year - Understatement of depreciation expenses - Dividends declared
= $2,000,000 + 1,000,000 - $430,000 - $320,000
= $2,250,000
Therefore for computing the retained earnings 31/1/17 we simply applied the above formula.
As we assume that the question is asked for the 31/1/17 instead of 1/1/17 as it is already mentioned in the question
2, 3, and 4 are the answers. <3
Answer:
16%
Explanation:
The computation of the target fixed assets sales ratio is shown below:
As we know that
Target Fixed asset - Sales ratio is
= Fixed Assets ÷ Full Capacity Sales
where,
Fixed assets is $100 million
And the full capacity sales is
= $250 million × 40%
Now putting these values to the above formula
So, the target fixed asset sales ratio is
= $100 million ÷ $250 million × 40%
= 16%
