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fredd [130]
3 years ago
15

The classical view of the economy holds that transitions to full employment are relatively quick.1. Under what condition(s) can

an economy make a relatively quick and easy transition to full-employment level of output?2. The Keynesian view of the economy holds that transitions to full employment can be extremely slow. What condition(s) would keep an economy from moving back to full employment quickly and easily?
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

1. Under what condition(s) can an economy make a relatively quick and easy transition to full-employment level of output?

Classical economics are great theoretically, but actual evidence from real life is always against them. The problem with wages and unemployment is that wages are sticky, no one likes a wage cut and employees will always fight against them. That results in drastic changes in the level of unemployment, since it is easier to fire employees than lower their salaries.

When a demand shock occurs, and the aggregate demand curve shifts to the right, the aggregate supply curve will also shift. At this point, suppliers will need to hire more employees and fast since they cannot keep up with the demand. The problem is that in real life, demand shocks are sudden only in theory, no one will wake up tomorrow having twice the money and willing to spend it all immediately.

Classical economics work on the long run, but the problem is that the long run is not a definite point in time. We might actually never live to see the long run occur.

2. What condition(s) would keep an economy from moving back to full employment quickly and easily?

Shifts in the aggregate demand curve never occur from one day to another, they are gradual and take time. In real life, unless you suddenly win the lottery, the amount of goods that you purchase is generally stable. It will increase or decrease over time but not abruptly. Since sudden demand shocks do not occur in real life, neither do sudden shifts in the employment level. That is why the government issues monthly unemployment data, and you analyze the trends over several months or even years.

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he direct write-off method of accounting for uncollectible accounts a. emphasizes the matching of expenses with revenues. b. emp
kolezko [41]

The direct write-off method of accounting for uncollectible accounts

<u>d. is not generally accepted as a basis for estimating bad debts.</u>

Explanation:

  • A method for recognizing bad debts expense arising from credit sales. Under this method there is no allowance account.
  • Rather, an account receivable is written-off directly to expense only after the account is determined to be uncollectible.
  • One method of recording the bad debts is referred to as the direct write off method which involves removing the specific uncollectible amount from accounts receivable and recording this as a bed debt expense in the income statement of the business.
  • The mechanics of the allowance method are that the initial entry is a debit to bad debt expense and a credit to the allowance for doubtful accounts (which increases the reserve).
  • The allowance is a contra account, which means that it is paired with and offsets the accounts receivable account
7 0
2 years ago
As leader of your company's Web team, you have been asked to give an oral presentation of plans for your company's new Website.
monitta

Answer:

Because it will greatly help to pass (convey) the information across the board in a very effective and interesting way.

Explanation:

As leader of your company's Web team, when you have been asked to give an oral presentation of plans for your company's new Website. Those attending your presentation include upper-level managers and members of various departments in the company. You should consider using presentation tools during your meeting because it will greatly help to pass (convey) the information across the board. Presentation tools are very much effective when you have to pass information within certain groups in a very effective, interesting and efficient way. You can create attentiveness and interest within your audience with the help of aesthetically appealing images, graphics and fonts. In this way you can convey heard to understand concepts, definitions and philosophies in a very easy way.

8 0
3 years ago
A product that cannot be perceived by the senses is called an _____ product.
Eva8 [605]
Im pretty sure it is amenity
8 0
3 years ago
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's
Umnica [9.8K]

Answer:

break even rate = $31000

ultra break even point  = $62000

Explanation:

given data

total fixed costs = $1,612,000

solution

WE FIND HERE FIRST contribution margin that is

contribution margin for regular per unit = $20 - $8

contribution margin = $12

and

contribution margin for ultra = $24 - $ 4

contribution margin for ultra = $20

so if 1 unit of regular is sold

2 unit of ultra will sold here

so

contribution margin is here

contribution margin = ( $12 × 1 )+  (  $12 × 2 )

contribution margin =  $52

and

break even point at commposite rate = total fix cost ÷ contribution margin rate at commposite rate

so

break even rate = \frac{1612000}{52}

break even rate = $31000

and

ultra break even point = 31000 × 2

ultra break even point  = $62000

4 0
3 years ago
Purchase investment in bonds for $115,000. Sell land costing $40,000 for only $31,000, resulting in a $9,000 loss on sale of lan
Juli2301 [7.4K]

Answer:

net cash flow  26,800

Explanation:

NOTE: missing information attached.

Operating

net income                 104,000

removal of non-monetary terms

depreciation expense 37,000

loss on sale of land       9,000

adjusted net income        150,000

<u>Changes in working capital:</u>

Increase in AR                  (22,000)

Decrease in Inventory       40,000

Prepaid increase                 (7,200)

Decrease in AP                 (16,000)

decrease interest paayble (5,000)

increase in tax payable         1,000

net change in working capital     (9,200)

net cash generated from operating     140,800

investing

sale of land 31,000

purchase of debt securities (115,000)

cash used in investing activities 84,000

financing

cash dividends (30,000)

cash used in financing activites 30,000

net cash flow  26,800

beginning cash 227,800

ending cash 254,600

6 0
3 years ago
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