Answer: Continuous innovation
Explanation: Continuous innovation as the name suggest, means the ongoing process of innovation on a particular product or industry with slight changes in each and every stage.
The minor innovations in the latest technology overtime is called continuous innovation. Automobile and mobile phones sector are industries depicting continuous innovation.
Question:
For an economy starting at potential output, a decrease in autonomous expenditure in the short-run results in a(n):
A. increase in potential output
B. recessionary output gap
C. decrease in potential output
D. expansionary output gap
Answer:
The correct answer is B
Explanation:
A decrease in autonomous expenditure shifts the Planned Aggregate Expenditure curve downward thus creating a lower equilibrium output.
PAE = C + Ip + G + NX
where
PAE = Planned Aggregate Expenditure
C = consumption
Ip = Investment Spending
G = Government Spending
NX = Net Export
If an economy has its output equal to its potential, this will create a reduction in short-run equilibrium output leading to a recessionary output gap.
Cheers!
Answer:
The company's debt ratio at the end of the current year is 66%
Explanation:
For computing the debt ratio, we need to apply the formula which is shown below:
Debt ratio = (Total liabilities) ÷ (total assets) × 100
= ($182,200 ÷ $276,000) × 100
= 66%
The other information which are given in the question is of no use. That's why we do not consider it. Hence, ignored it.
Answer:
True
Explanation:
The net cash flow for the year can be calculated using the following equation:
net cash flow = net income + accounts payable - accounts receivable
net cash flow = $29,500 + $5,400 - $2,500 = $32,400
We have to subtract accounts payable since they were included in the net income but the cash has not been received yet.
Answer:
The correct answer is c) Increasing government spending in order to increase aggregate demand
Explanation:
Fiscal policy is based on the ideas of the economist Jhon Keynes, who says that governments could stabilize the business cycle and regulate economic output by adjusting spending and tax policies.
There are two common types of Fiscal policy: "Expansionary policies and Contractionary policies".
For this problem is necessary an Expansionary policy
<u>Spending</u>: The government may generate economic expansion through increases in spending. The government could increase employment, pushing up demand and growth.
<u>Taxes</u>: When people pay lower taxes, they have more money to spend or invest, which traduce into a higher demand
