Answer:
C) Shows an inverse relationship between the price level and the quantity of all goods and services demanded.
Explanation:
Aggregate demand represents the demand for goods and services while its supply is called aggregate supply. Aggregate demand curve represents the total amount of goods and services demanded by an economy different price levels. Using a pictorial image, this curve has various axis: The vertical one represents the price level of the goods and services. This aggregate price level is determined through a Gross Domestic Product deflator. The horizontal axis represents the quantity of goods and services procured. All aggregate demand curves just like normal demand curves, slopes downwards which means that there is an inverse relationship between the price levels and the quantity demanded. The downward sloping of the aggregate demand curves and normal demand curves might be coincidental but with various reasons. The downward slope normal demand curves is caused by the assumption that prices of goods and services as well as the buyer's income are constant.
Downward slope in aggregate demand curves is assumed to draw reasons from the fact that government most at times are in charge of money supply. Another assumption involves interest rate and net exports.
Answer:
False
Explanation:
"Microeconomics" is the branch of economic theory that deals with behavior and decision making by small units such as individuals and firms.
However, Macroeconomics deal with structural analysis of the economy as a whole.
Answer:
$705
Explanation:
GDP is the monetary value or price of all finished goods ans services produced in a country or region in an specific period of time. To calculate it we use this formula:
GDP= Consumption (C)+Domestic Investment (I)+Governmet expenditures and income (G)+ Net Exports (total exports minus total imports) (NX)
In this case we have, Capital Consumption Allowance (CCA): the percentage of GDP that a country must spend each year to maintain the certain economic production level.
This account is used when we have an income approach of the GDP and when we calculte the net domestic product (NDP). This formula is used when we calculate NDP.
NDP= C+I+G+NX-CCA
And also we have a formula that incorporates NDP and GDP.
NDP=GDP-CCA ⇒ GDP=NDP+CCA
So, CCA must be added to NDP to obtain GDP.
The problem also have the concept of inventories. Inventories are a stock and GDP measures a flow of production. If we want to use inventories in the GDP calculation, the change in this stock must be included.
For this problem we calculate first the NDP
NDP=$500+$100+$50+($75-$40)
NDP=$685
Then we calculate the GDP
GDP=$685+$25
GDP=$710
Then we add the change in inventories which was a fallen by 5%
GDP=$710-$5
GDP=$705
Answer:
D. money that is authorized by a central bank and that does not have to be exchanged for gold or some other commodity money
Explanation:
By definition, fiat money is a physical money that is made a legal tender by the government or other authoritative figure.
It is not backed by any physical commodity like silver or gold but only by the government that distributed it . Additionally, if inflation occurs in a country that uses fiat money as a legal tender, the owners will go at a huge loss since it cannot be redeemed and in worst case scenario such as hyperinflation, it will be worthless.
