Answers
B) Lapping this procedure involves the crediting of one account through the abstraction of money from another account.
What is crediting?Credit is the trust that permits one party to give money or resources to another party, wherein the second party does not immediately reimburse the first party (thereby creating a debt), but instead promises to pay back or return those resources (or other materials of equal value) at a later time. Credit is derived from the Latin verb credit, which means "one believes." Credit is a strategy for formalizing reciprocity, making it enforceable by law, and extending it to a sizable number of unrelated parties.
The resources offered may be material (such as issuing a loan) or financial, or they may be in the form of commodities or services (e.g. consumer credit). Any deferred payment arrangement is considered credit. A creditor, sometimes referred to as a lender, extends credit to a debtor, also referred to as a borrower.
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Related Questions
Paul’s grocery received 1,000 pounds of onion at $0.11 per pound. On the average, 3% of the onions will spoil before selling. Find the selling price per pound to obtain a makeup rate of 180% based on cost.
Answers
The selling price per pound for onions to obtain a makeup rate of 180% based on cost is $2.0350.
What is the selling price per pound for onions?Total Cost = Quantity * Cost per pound
Total Cost = 1,000 pounds * $0.11/pound
Total Cost = $110
Spoilage Quantity = 3% of Quantity
Spoilage Quantity = 3% of 1,000 pounds
Spoilage Quantity = 0.03 * 1,000 pounds
Spoilage Quantity = 30 pounds
Effective Quantity = Quantity - Spoilage Quantity
Effective Quantity = 1,000 pounds - 30 pounds
Effective Quantity = 970 pounds
Makeup Rate = 180%
Selling Price per pound:
= (Total Cost * Makeup Rate) / Effective Quantity
= ($110 * 1.80) / 970 pounds
= $2.03505/pound.
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When a speaker ignores the audience's ideals and expectations:
O
A. the speaker's feelings might be hurt.
B. the speaker's grades may be poor.
C. the audience might change their values.
D. it is likely that the audience will distrust the speaker.
SUBMIT
Answers
Answer:
D, It is likely that the audience will distrust the speaker.
Explanation:
100% For Sure, Right Answer
A p e x
Hope This Helps! <3
Juan would like to give his
newly born grandson a gift of
$10,000 on his 18th birthday.
Juan can earn 7% annual
interest on a certificate of
deposit How much must he
deposit now in order to achieve
his goal?
Answers
Answer:
7%+18=10,000
Explanation:
I think that's how it goes u just need to solve it
Please Help!
Rosa works as an administrative assistant for a clothing company. Which of the following tasks might she do in her
job?
Teaching young children how to read
Arranging travel plans for clients
Manage schedules and help with office meetings
Answers
Answer:
C. Manage schedules and help with office meetings
Allison lives in the United States and has just retired. It is the end of October 2018. She has long had dreams of cruising the fjords on the west coast of Norway, visiting Buckingham Palace in the United Kingdom, seeing the cherry blossoms in Japan, and going to the top of the Eiffel Tower in France. She last considered all four options on New Year's Day 2008. She would like to select her trip based on which country´s currency has subsequently weakened the most against the U.S. dollar. Where should she go on vacation?
Answers
Answer:
In 2015, an accounting gimmick gave Ireland a 26% growth rate in GDP. What does this event reflect about the nature of GDP?
Click card to see definition
If the measurement of economic activity evolves, GDP can change.
Explanation:
Based on the weakened conditions of a currency exchange against the U.S. Dollar between 2008 and 2018, it would be advisable for Allison to go on a vacation for visiting Buckingham Palace in the United Kingdom.
What is the significance of currency exchange?A currency exchange can be referred to or considered as the rate at which the currency of one country compares with the currency of any other country. U.S. Dollar is currently the strongest currency in the world.
When a comparison between the currencies like the American Dollar and Euros is done, it is found that there is a degrowth in the value of Euros against the dollars, and thus, vacation in such country will be cheaper for Allison to visit to.
Therefore, the significance regarding currency exchange has been aforementioned.
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Mr. and Mrs. Baker, who file a joint tax return, have an adjusted gross income of $75,000 for 2020. Their son, Tony, began his fifth year of college on July 15, 2020. The Bakers’ expenses incurred in 2020 were $6,000 for tuition. What is the amount of Lifetime Learning Credit the Bakers may claim in 2020?
A.
$1,200
B.
$6,000
C.
$2,000
D.
$10,000
Answers
The amount of Lifetime Learning Credit the Bakers may claim in 2020 is: B. $6,000.
Lifetime learning creditSince the expenses that was incurred in the 2020 was the amount of $6,000 which means that the amount of Lifetime Learning Credit the that may be claim in 2020 is $6,000.
Reason being that the child as well as the dependent care credit for the current year cannot be more than $6,000.
Therefore the correct option is B.
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pls help with business (extra points)
Answers
Answer:
The easiest business to start is a service business, especially for a beginner. A service business is any kind of business where you sell services. In other words, you sell your skill, labor or expertise — instead of products or goods
Explanation:The easiest business to start is a service business, especially for a beginner. A service business is any kind of business where you sell services. In other words, you sell your skill, labor or expertise — instead of products or goods
Which statement describes the word “iterative”?
Answers
Answer:
D.
Explanation:
The word 'iterative' is derived from the Latin word 'iterare', which means 'to repeat.'
Iterative is a term used to define a process of repetition to attain the desired outcome. It is a repetitive process performed to improve or do better than before.
The statement that correctly defines the term 'iterative' is option D. The statement talks about working in cycles (repetition) to get a desired result of (refined product).
Therefore, option D is correct.
All employees at a factory are receiving a large bonus if there are no reported injuries for 6months. As a result, some employees are hiding their injuries so that they do not cause others to lose their bonus.
What are the reasons for the negative consequences of this bonus scheme? Modify the
scheme to solve the problem.
Answers
Answer:
In simple words, first of all the conditions given in the bonus structure are not at all justified as a labor might get injured due to an accident, one should believe that every individuals keeps full diligence during work to save herself or himself from injury.
Therefore, the company should change the bonus conditions overall like paying for the damages to the inured labor like fifty repent salary with leave in case severe injuries.
The following are Silver Corporation’s unit costs of making and selling an item at a volume of 8,000 units per month (which represents the company’s capacity):
Manufacturing:
Direct materials $ 4
Direct labor $ 5
Variable overhead $ 2
Fixed overhead $ 8
Selling and administrative:
Variable $ 1
Fixed $ 6
Present sales amount to 7,000 units per month. An order has been received from a customer in a foreign market for 1,000 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume that direct labor is a variable cost.
What is the financial advantage (disadvantage) for the company from this special order if it prices the 1,000 units at $20 per unit?
Expected Correct Answer :
$8,000
Answers
To calculate the financial advantage or disadvantage of the special order, we need to calculate the incremental revenue and incremental costs associated with the order.
Incremental revenue from the special order:
1,000 units x $20 per unit = $20,000
Incremental cost from the special order:
Direct materials: 1,000 units x $4 per unit = $4,000
Direct labor: 1,000 units x $5 per unit = $5,000
Variable overhead: 1,000 units x $2 per unit = $2,000
Variable selling and administrative: 1,000 units x $1 per unit = $1,000
Total incremental cost = $12,000
Contribution margin from the special order:
Contribution margin = Incremental revenue - Incremental cost
Contribution margin = $20,000 - $12,000
Contribution margin = $8,000
Since the contribution margin is positive, the special order would have a financial advantage of $8,000 for the company.
a machine that cost 220000 has an estimated residual value of 22000 and an estimated useful life of four years. the company uses double declining balance depreciation. calculate its book value at the end of year 3.
Answers
Answer:
the book value at the end of year 3 would be $27,500.
Explanation:
If you travel a lot for work and use cash to pay for most purchases, which type of financial institution would you probably have your
account at?
O credit union
O national or regional bank
Answers
poor farmer intends to cultivate three acres of paddy but the necessary credit facilities for such farming. The farmer needs money to prepare and till the land. Farmer approaches you for expert advice on how to get the necessary credit facilities. Advise the farmer on the best mode of Islamic microfinance for their needs and explain the procedure and conditions for the validity of the contract.
Answers
The advice which I would give to a poor farmer who intends to collect a loan to cultivate three acres of paddy with Islamic microfinance is that he should show his business plan to the bank.
The procedure which he needs to take include:
Submitting his business plan.Checking his credit history/worthiness.Talk to the bank finance advisor about their loan plans and validity.What is a Loan?This refers to the money collected for the purpose of solving a need or making an investment in a business.
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Although RICO was passed to prevent gangsters from taking money they earned illegally and investing it in legitimate businesses, it is now often used against businesspeople who break the law.
a) true
b) false
Answers
Mary lives in a remote mountain town. The community has been approached by a nuclear power company to build a waste storage facility in an abandoned salt mine in the area. Geologists have surveyed the mine and confirmed that the rock structure is very stable, but Mary still opposes the project. What is her primary concern likely to be?
A.
the cost of construction
B.
reduction in salt supplies
C.
reduction in property values
D.
risk of leakage from the nuclear waste containers
Answers
Answer:
Explanation:
D. risk of leakage from the nuclear waste containers
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
Answers
1. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.
Debit: Accounts Payable - Office Station Co.$1,200
Credit: Cash $1,200
2. Provided services on account, $4,200.
Debit: Accounts Receivable $4,200
Credit: Service Revenue $4,200
To pay off the remaining balance owing to Office Station Co., a debit is sent to the accounts payable account. To account for the cash outflow, the Cash account is credited. This journal entry records the settlement of a portion of the debt incurred on April 5 with Office Station Co.
The acknowledgment of revenue for services rendered to a client on the account is represented by this journal entry. To reflect the increase in the amount due by the client, the Accounts Receivable account is debited.
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The complete question is probably
Write journal entries
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
Explain Theory X and Theory Y management styles.
Answers
Whereas Theory X emphasizes the necessity of increased monitoring, outside rewards, and penalties, Theory Y emphasizes the significance of job pleasure as a motivator and encourages employees to approach jobs without direct supervision.
What is management theory X?The foundation of Theory X management is the idea that employees lack ambition and intrinsic motivation. Managers provide motivation by closely monitoring employees' work and ensuring that it was done appropriately.
What do Theories X and Y mean?Management theories created by Douglas McGregor include Theory X and Theory Y. Theory X is predicated on the notions that workers are unmotivated, lack motivation, only labor for compensation, and require continual supervision. Theory Y is predicated on the notions that workers desire employment, desire to assume responsibility, and do not require much supervision.
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Categories of rights
Answers
A good leader should have a positive outlook. Please select the best answer from the choices provided OT F
Answers
Answer:
true
Explanation:
if your leader dont have postivie outlook it will spread to the others
Answer:
true
Explanation:
Select all that apply.
Select the items that can result in higher interest earned.
1:higher balance
2:greater number of withdrawals
3:higher interest rate
Answers
Answer:
a higher balance can increase interest rate
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales.
The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $68,000 of manufacturing overhead for an estimated activity level of $40,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:
Raw materials $ 10,200
Work in process $ 4,200
Finished goods $ 8,700
During the year, the following transactions were completed:
A. Raw materials purchased on account, $169,000.
B. Raw materials used in production, $147,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).
C. Costs for employee services were incurred as follows:
Direct labor $ 178,000
Indirect labor $ 216,900
Sales commissions $ 21,000
Administrative salaries $ 48,000
D. Rent for the year was $18,100 ($13,100 of this amount related to factory operations, and the remainder related to selling and administrative activities).
E. Utility costs incurred in the factory, $16,000.
F. Advertising costs incurred, $13,000.
G. Depreciation recorded on equipment, $22,000. ($17,000 of this amount related to equipment used in factory operations; the remaining $5,000 related to equipment used in selling and administrative activities.)
H. Manufacturing overhead cost was applied to jobs, $ ? .
I. Goods that had cost $228,000 to manufacture according to their job cost sheets were completed.
J. Sales for the year (all paid in cash) totaled $506,000. The total cost to manufacture these goods according to their job cost sheets was $219,000.
Required:
1. Prepare journal entries to record the transactions for the year.
2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the beginning balances in your inventory accounts).
3A. Is Manufacturing Overhead underapplied or overapplied for the year?
3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.
4. Prepare an income statement for the year. All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.
Answers
Net income of $2,000 was generated from sales income of $506,000 after deducting operating expenses of $285,000, including direct labor, rent, utilities, advertising, and depreciation costs.
1. A. Unrefined components bought on account $169,000
Unrefined components stock $169,000
Creditor liabilities $169,000
B. Unrefined components utilized underway $147,000
Work in process stock $121,000
Producing above $26,000
Unrefined substances stock $147,000
C. Direct work $178,000
Aberrant work $216,900
Deals commissions $21,000
Regulatory pay rates $48,000
Compensation payable $464,900
D. Lease $18,100
Prepaid lease $5,000
Lease payable $13,100
E. Utilities cost $16,000
Utilities payable $16,000
F. Publicizing cost $13,000
Publicizing payable $13,000
G. Devaluation cost $22,000
Collected deterioration - production line hardware $17,000
Collected deterioration - selling and regulatory hardware $5,000
H. Fabricating above applied to occupations $194,400 (2.4 x direct work cost)
Producing above $194,400
Work in process stock $194,400
I. Completed products stock $228,000
Work in process stock $228,000
J. Cash $506,000
Deals income $506,000
Cost of products sold $219,000
Completed products stock $219,000
2. T-Records:
Unrefined components stock:
Starting total $10,200
Buys $169,000
Unrefined components utilized underway ($121,000 direct)
Finishing total $58,200
Work in process stock:
Starting surplus $4,200
Direct work $178,000
Producing above applied $194,400
Cost of products finished $228,000
Finishing surplus $64,800
Completed products stock:
Starting surplus $8,700
Cost of products finished $228,000
Cost of products sold ($219,000)
Finishing surplus $17,700
Producing above:
Applied to occupations $194,400
Real above $278,900
Above overapplied $84,500
Cost of merchandise sold:
Starting total $0
Cost of merchandise sold $219,000
3A. Fabricating above is overapplied by $84,500.
3B. Fabricating above $84,500
Cost of merchandise sold $84,500
4. Pay articulation:
Deals income $506,000
Cost of merchandise sold ($219,000)
Net benefit $287,000
Working costs:
Roundabout work $216,900
Lease ($13,100 + $5,000) $18,100
Utilities cost $16,000
Promoting cost $13,000
Deterioration cost ($17,000 + $5,000) $22,000
Absolute working costs $285,000
Net gain $2,000
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In a survey of a group of people, it was found that 60 0f them have
business, 45 have government jobs, 125 have farming, 27 have business
only, 15 have government job only, 10 have business and government
job only, 5 have government job and farming only.
i) How many people have all the profession?
ii) How many people were there in a survey?
Answers
Answer:
i) 15 ii) 177
Explanation:
Number of people with business = 60
Number of people with farming = 125
Number of people with government jobs = 45
Number of people with business only = 27
Number of people with government jobs only = 15
10 have business and government job only, 5 have government job and farming only.
i) Let x represent the number of people with all three jobs. Hence:
Number of people with government jobs = number of people with all three jobs + number of people with government and farming job + number of people with government and business + number of people with government job only
45 = x + 10 + 5 + 15
45 = x + 30
x = 15
15 people have all three profession.
ii)
Number of people with business jobs = number of people with all three jobs + number of people with business and farming job + number of people with government and business + number of people with business job only
60 = 15 + number of people with business and farming job + 10 + 27
number of people with business and farming job = 60 - 52 = 8
Number of people with farming jobs = number of people with all three jobs + number of people with business and farming job + number of people with government and farming + number of people with farming job only
125 = 15 + 8 + 5 + number of people with farming job only
number of people with farming job only = 125 - 28 = 97
Number of people surveyed = number of people with all three jobs + number of people with business and farming job + number of people with government and farming + number of people with farming job only + number of people with government and business + number of people with business job only + number of people with government job only
Number of people surveyed = 15 + 8 + 5 + 97 + 10 + 27 + 15
Number of people surveyed = 177
The price elasticity of supply reflects the flexibility of firms to increase or decrease the quantity supplied.
Which of the following does NOT increase flexibility?
Answers
So far in this chapter, all of the elasticity metrics have been related to the demand side of the market. Knowing how sensitive the amount given is to a change in pricing is also helpful.
Let's say there is a surge in apartment demand. There will be a dearth of flats available at the previous level of rent, which will put pressure on rents to increase. With all other factors remaining constant, the lower the rise in rent necessary to address the shortfall and restore market equilibrium, the more sensitive the supply of available flats is to changes in monthly rates. In contrast, price would need to climb more if quantity provided is less responsive to price changes, resulting in a shortage brought on by a spike in demand.
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Choose a side. Based on the evidence, which perspective do you agree with more? Write a paragraph to identify your position. Use evidence to explain your choice.
Answers
Claim: The Federal Reserve plays a positive role in the U.S. economy by effectively managing monetary policy and promoting economic stability and growth.
How does the Federal Reserve contribute to economic stability?The Federal Reserve has main role of maintaining price stability, promoting full employment and fostering sustainable economic growth. Through its control over monetary policy, the Federal Reserve uses various tools such as open market operations.
Its control reserve requirements and interest rate adjustments to manage the money supply and influence interest rates. By doing so, the Federal Reserve aims to stabilize inflation and minimize fluctuations in economic activity.
The evidence suggests that the Federal Reserve's actions have had a positive impact on the U.S. economy. For instance, during the 2008 financial crisis, its implemented extraordinary measures to stabilize the financial system including providing liquidity support to banks and implementing unconventional monetary policies like quantitative easing.
Full question:
Make a claim about the positive role the Federal Reserve serves in the U.S. economy. Use evidence from your research to support your claim ased on the evidence, which perspective do you agree with more?
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Jarmon Company owns twenty-three percent (23%) of the voting common stock of Kaleski Corp. Jarmon does not have the ability to exercise significant influence over the operations of Kaleski. What method should Jarmon use to account for its investment in Kaleski
Answers
Answer: Cost method
Explanation:
The method that Jarmon should use to account for its investment in Kaleski is the cost method.
Since it's a cost method, Kaleski should record the investment in stocks at cost, that is the price that was paid for the stock. In this case, most stocks from the other investors are purchased through the brokers.
Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership interest to Emma for $135,000 cash, how much capital gain and ordinary income must Pamela recognize from the sale
Answers
Answer: Capital gain = $10,000 ; Ordinary income = $25,000
Explanation:
Here is the complete question:
The PLM Partnership balance sheet includes the following assets on December 31 of the current year:
Basis FMV
Cash $230,000 $230,000
Accounts receivable 0 75000
Land 70,000 100,000
Total $300,000 $405,000
Pamela, a 1/3 partner, has an adjusted basis of $100,000 for her partnership interest. If Pamela sells her entire partnership interest to Emma for $135,000 cash, how much capital gain and ordinary income must Pamela recognize from the sale?
The following can be calculated based on the question above:
Pamela's share of the unrealized receivables will be the ordinary income which will be the unrealized receivables of $75000 which is then multiplied by 1/3 which is the interest. This will be:
Ordinary income = 1/3 × $75,00
= $25,000
The capital gain will be the difference that occurs between total gain and ordinary income.
Total gain difference
= $135,000 - $100,000
= $35,000
Ordinary Income = $25,000
Capital gain = $35,000 - $25,000
= $10,000
In a progressive tax structure, the higher a taxpayer's
income, the greater percentage he or she must pay in
taxes. This chart shows a sample progressive income tax
CEPTS for a taxpayer with total taxable income of $100,000.
Income According to the chart, what would be the total
tax on taxable income of $65,000?
Answers
Answer:According to the chart, the total tax on taxable income of $65,000 would be $16,250.
Explanation:
Find the area under the standard normal curve between z=−2.38 and z=−0.61. Round your answer to four decimal places, if necessary.
If you would like to look up the value in a table, select the table you want to view, then either click the cell at the intersection of the row and column or use the arrow keys to find the appropriate cell in the table and select it using the Space key.
Answers
The area under the standard normal curve between z=−2.38 and z=−0.61 will be 0.2622.
What is the normal curve?The standard deviation determines the width of the curve in a normal distribution, which depicts a symmetrical plot of data around its mean value. It is represented graphically as the "bell curve."
A continuous probability distribution called a normal distribution has values distributed symmetrically, primarily in an area around the mean.
A normal distribution differs from a standard normal distribution in that the mean and standard deviation of a normal distribution can be any value. A standard normal distribution, on the other hand, always has a fixed mean and standard deviation.
The area under the standard normal curve between z=−2.38 and z=−0.61 will be:
= P[-2.38 <Z < -0.61]
= P(Z ≤ -0.61] - P[ Z ≤ -2.38]
= 0.2709-0.0087
= 0.2622
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100 points) The seasonal demand for a particular product is given below:
Period 1 2 3 4 5 6
Demand 300 450 100 450 450 100
The fixed parameters are:
Fixed Cost $8
Unit Production Cost $1
Holding Cost $ 1.3
Calculate total ordering cost using following three methods:
i) Lot-for-Lot
ii) Wagner-Whitin algorithm
iii) Fixed order quantity
Which method you will chose to order and why
Answers
The ordering cost using the Lot-for-Lot method is $900.06. DOQ (Discrete Order Amount) is a lot sizing approach in which the net requirements happening for each period are the quantity of order. This strategy is commonly utilized for pricey commodities and items with sporadic demand.
How to calculate the cost?The ordering cost using the Lot-for-Lot method will be calculated thus:
C = Q/2(H) + D)Q(S)
C = 450/2(4) + 100/450(3)
C = 450(2) + 30/45
C = 900 + 0.7
C = $900.7
The ordering cost using the Wagner-Whitin algorithm will be:
= 300 + 900 + 300 + 1700 + 2150 + 600
= $5750
Wagner-Whitin devised an algorithm to determine the appropriate lot size for each period when net demands for several periods in the future are known.
The ordering cost using fixed order quantity will be:
= 6/(300 + 450 + 100 + 450 + 450 + 100)
= 6/1850
= 0.00324
FOQ (Fixed Order Quantity) is a method for determining the amount for size and is abbreviated as FOQ. The Net Requirements are scaled in this technique by establishing the FOQ value as an Order Quantity and fixing the quantity.
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Below are demand schedules for 4 consumers.
Price Alice Bob Charlie Dora
8 2 0 2 3
6 8 4 6 7
4 11 5 9 11
2 15 12 12 14
What is the aggregate demand at the price $4?
Answers
For the given demand schedule ,The aggregate demand at the price $4 is 36.
What is the aggregate demand?Aggregate demand is the tοtal quantity οf gοοds and services that cοnsumers, cοmpanies, and the gοvernment are willing and able tο purchase in an ecοnοmy at a particular price level. It includes net expοrts, gοvernment expenditure, investment, and cοnsumer spending, and is represented by a dοwnward-slοping curve.
What are the cοmpοnents οf aggregate demand?The cοmpοnents οf aggregate demand are the different categοries οf spending that cοntribute tο the tοtal demand fοr gοοds and services in an ecοnοmy. Cοnsumer spending (C), investment spending (I), gοvernment spending (G), and net expοrts (NX) are the main cοmpοnents. Cοnsumer spending is the tοtal spending by hοusehοlds οn gοοds and services, while investment spending is capital gοοds, gοvernment spending is salaries οf gοvernment emplοyees, public wοrks prοjects, and defense spending. Net expοrts are the difference between expοrts and impοrts.
Hοw is AD calculated?Aggregate demand is calculated by adding up the tοtal spending οn gοοds and services within an ecοnοmy. It is brοken dοwn intο fοur cοmpοnents: cοnsumer spending (C), investment spending (I), gοvernment spending (G), and net expοrts (NX). Cοnsumer spending includes hοusehοlds, investment spending includes capital gοοds, and gοvernment spending includes infrastructure prοjects and defense. Net expοrts include exports minus impοrts οf gοοds and services.
The fοrmula fοr aggregate demand is:
AD = C + I + G + NX
Where: AD = Aggregate demand C = Cοnsumer spending I = Investment spending G = Gοvernment spending NX = Net expοrts
The amοunt required by each cοnsumer at the price οf $4 must be added up in οrder tο determine the aggregate demand.
Price Alice Bοb Charlie Dοra Tοtal
4 11 59 11 36
Therefοre, the tοtal demand at $4 is 36.
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