A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at AD3. So option D.AD3 is the correct option of the given statement.
What is fiscal policy that is in contraction?In a contractionary fiscal strategy, the government raises more revenue than it spends by either higher tax rates, lower spending, or a combination of the two. The greatest moment to implement this kind of fiscal policy is when the economy is doing well. The reverse of expansionary fiscal policy is contractionary fiscal policy.
What effect does fiscal policy that is in contraction have?Contrarily, a contractionary fiscal policy reduces aggregate demand by lowering investment levels, lowering government spending, and lowering consumer and business spending. This is accomplished by tax increases or spending cuts.
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how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5000
The net operating income increase (decrease) per month is $2,300 if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000.
the formula is:
Increase ( Decrease ) in net operating income = Increase in advertising - ( Increase in sales * Contribution margin ratio )
given data,
Increase in advertising = $5,000
Increase in sales = $9,000
Contribution margin ratio = 30%
by substituting the above values in formula,
Increase ( Decrease ) in net operating income = $5,000 - ( $9,000* 30% )
= $5,000 -$2,700
= $2,300
the complete question is:
Data for Hermann Corporation are shown below
Per Unit Percent of Sales
Selling Price $90 100%
Variable Expenses 63 70
Contribution margin $27 30%
Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.
1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000?
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Of all things that you can show an investor, what is typically the most important item that will convince them to invest in your startup company?.
Of all things that you can show an investor, return is typically the most important item that will convince them to invest in your startup company.
An investor is one the one assigns economic capital accompanying the expectation of a future return or to gain a benefit. Through this assigned capital most of the moment of truth the financier purchases a few classes of features.
There are three types of investors: pre-financier, inactive financier, and active financier. Each level builds on the abilities of the former level beneath it. Startups are companies or ventures that are concentrated on an alone crop or aid that the founders be going to revive or advertise. These guests typically forbiddance have a mature trade model and, more critically, lack enough capital to move upon the next chapter of trade.
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if $400 is invested at an interest rate of 3.5% per year, find the amount of the investment at the end of 13 years for the following compounding methods. (round your answers to the nearest cent.) (a) annually $ (b) semiannually $ (c) quarterly $ (d) continuously
The amount of the investment at the end of 13 years for the following compounding methods is: (a) annually $470.85 (b) semiannually $627.99 (c) quarterly $629.22 (d) continuously $630.46.
How to find the compound interest?Using this formula
A = P (1+r/n)^nt
Where:
P= initial amount.
r =rate of interest in decimal.
t =time in years
a. Annually
A = $400 ( 1+ 0.035/12)^ 12× 13
A = $400 ( 1+.035/12)^ 56
A = $470.85
b. Semiannually
A = $400 ( 1+ 0.035/2)^ 2× 13
A = $400 ( 1+.035/2)^ 26
A = $627.99
c. Quarterly
A = $400 ( 1+ 0.035/4)^ 4× 13
A = $400 ( 1+.035/4)^ 52
A = $629.22
d. Continuously
A =Pe^rt
A = $400e^(0.035 × 13)
A = $400e^0.455
A= $630.46
Therefore annual amount is $470.85.
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as a manager, you will want to use the for your product to forecast the likely consequences of . please choose the correct answer from the following choices, and then select the submit answer button. answer choices income elasticity of demand; a change in supply percent change in price; the price elasticity of supply percent change in price; the price elasticity of demand price elasticity of demand; a change in price
As a manager, you will want to use the"price elasticity of demand" for your product to forecast the likely consequences of "a change in price".
What is the meaning of the term price elasticity of demand?The ratio of the percentage variation in the amount demanded to the change in its price is known as the price elasticity of demand.
The demand's price elasticity is often negative since the quantity demanded has a downward slope. However, the adverse indicator is frequently overlooked. The degree to that which substitute products are available is one factor that affects the price elasticity of demand cross price elasticity of demand. Demand is typically inelastic when there are very few alternatives. Firms therefore have some control over pricing. Demand is typically elastic when there are lots of replacements, and businesses have little power over pricing.The company has some influence over its price when the demand curve is negative.
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Question: at a level of 20,000 units sold, gail corp. Has sales of $400,000, a contribution margin ratio of 40%, and a profit of $40,000. What is the break-even point in units? multiple choice 12 000 8. 000 20,000 15. 000 1
15,000 units is the break-even point. In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or "even."
How to calculate break-even point ?In economics, business, and particularly cost accounting, the break-even point is the point at which total cost and total income are equal, or even. Although opportunity costs have been paid and capital has received the risk-adjusted, projected return, there is no net loss or gain, and one has broken even.
Total cost = variable cost x number of units + total fixed cost (TC = VC*X + FC). This is also known as the cost function.
At break-even point, TR = TC.
One of the most widely used financial analysis concepts is the break-even point, which is not just useful for economists but can also be used by business owners, accountants, financial planners, managers, and even marketers.
Fixed costs are ($400,000 × 40%) - $40,000 = $120,000.
Break-even point is $120,000/0.40 = $300,000 in sales,
and $300,000/$20 = 15,000 in units.
The break-even point is 15,000 units
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on july 1, hanson corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Paid-In Capital in excess of par value, preferred stock = $9,000
Moreover, We have Debit = $10,000
And we have Cash = $1,000
Preferred Stock, 100 par value
So, Paid-In Capital in excess of par value, preferred stock = $9,000.
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other things the same, a higher interest rate induces people toa. invest more, so the supply of loanable funds slopes upward.b. save less, so the supply of loanable funds slopes downward.c. invest less, so the supply of loanable funds slopes downward.d. save more, so the supply of loanable funds slopes upward.
Other things the same, a higher interest rate induces people to invest more, so the supply of loanable funds slopes upward.
The cost of borrowing money goes up when interest rates rise, while the yield on savings goes up. Due to this, firms and individuals postpone purchases and take out less credit. In turn, the economy experiences less money flow and lower inflation.
Hence the correct option is A
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question content areaconsider derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in process inventory on january 1, $189,100; and work in progress inventory on december 31, $197,600. what is the budgeted cost of goods manufactured for the year?
Materials to be used, $64,750; direct labour, $198,400; factory overhead, $394,800; work in process inventory on january 1, $189,100; and work in progress inventory on December 31, $197,600.
Cost of goods manufactured = Direct materials + Direct labour + manufacturing overhead + Opening WIP - closing WIP
$64750 +$198400+$394800 + $189100-$197600
$649450.
Therefore, the budgeted cost of goods manufactured for the year is $649450.
How to calculate cost of goods manufactured?
To calculate the manufacturing cost, the direct material, direct labor, and manufacturing overhead costs must be added together to get the company's total manufacturing cost. Next, add the initial work in process from the total manufacturing cost and subtract the final work in process to get the manufacturing cost.
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because it directly impacts the financial viability of both organizations and individuals, activities related to which marketing mix element are watched and regulated most closely?
Without a competitive pricing, a great product in the right place with great advertising cannot possibly result in a sale.
What does marketing management's pricing strategy entail?Pricing strategy is a tool used to determine the price of a specific good or service by taking into account a number of variables, including resource consumption, market conditions, customer ability, demand and supply, necessity for the product (such as frequent use or occasional use), etc.
What are some examples of elements that make up the external marketing environment?The external marketing environment is made up of all variables that are out of your company's control, such as governmental changes, social, economic, and competitive influences.
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Computer inventory systems are often programmed to produce a cycle count notice in which of the following case? A) When the record shows a near maximum balance on hand B) When the record shows positive balance but a backorder was written C) When quality problems have been discovered with the item D) When the item has become obsolete E) When the item has been misplaced in the stockroom
Based on the computer programming concept, and the available options, the computer inventory systems are often programmed to produce a cycle "When the record shows a positive balance but a backorder was written."
What is Computer Inventory System?Computer Inventory System is a term that is used to describe the process or techniques used in ensuring a company controls inventory levels in real-time throughout the day.
In some cases, a computer inventory system is otherwise known as inventory management software, where businesses can be easily updated with inventory orders, counts, and sales.
Other areas in which the computer can be programmed to produce a cycle count are the following:When the record indicates a low or zero balance on hand; it is easier to count fewer items.After the record shows a positive balance but a backorder was written.When some specified level of activity has been achieved.To signal a review based on the importance of the item, as in the ABC system.Hence, in this case, it is concluded that the correct answer is option B "When the record shows positive balance but a backorder was written."
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Years ago mcdonald's switched from styrofoam boxes for its large sandwiches to corrugated boxes made partially from recycled materials because of concerns that styrofoam took too long to decompose in landfills. In this situation, mcdonald's was ________.
Concerned that Styrofoam would take too long to decompose in landfills, McDonald's made the switch from Styrofoam to partially recycled corrugated boxes for its large sandwiches many years ago. McDonald's was socially responsive in this circumstance.
What distinguishes social responsiveness from social responsibility?
The fundamental contrast between friendly obligation and social responsiveness is that social obligation is the moral/ethical constraint/obligation of an individual or an element towards the general public while social responsiveness is how an individual or a substance answers a social need.
What examples of social responsibility do you have?
volunteering, donating blood, and working at a food bank or animal shelter are all examples of community service. advocating for political or social issues that can assist others, such as child labor laws, fair trade products, and recycling, are examples of issues that affect society.
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consider the components of the national savings and investment identity, categorized below. each scenario will affect one component of the identity. classify each scenario according to the component it will affect. a worker's contribution to a retirement fund is a farmer buying a new tractor is a decrease in automobile exports is a domestic company building a factory is the government building a bridge affects mitchell quitting his job to go back to school affects an increase in french wine imports is an inflow of foreign capital. a family cutting down on expenses affects private domestic savings.
private domestic savings, private domestic investment, an inflow of foreign capital, private domestic investment, government budget deficit, private domestic savings, an inflow of foreign capital and private domestic savings.
A worker's contribution to a retirement fund is private domestic savings.
A farmer buying a new tractor is private domestic investment.
A decrease in automobile exports is an inflow of foreign capital.
A domestic company building a factory is private domestic investment.
The government building a bridge affects government budget deficit.
Mitchell quitting his job to go back to school affects private domestic savings.
An increase in French wine imports is an inflow of foreign capital.
A family cutting down on expenses affects private domestic savings.
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the constant growth dividend model would be useful to determine the value of all, but which of the following firms? a firm whose earnings and dividends are growing at a fairly steady rate a firm whose earnings and dividends are declining at a fairly steady rate a firm whose expected sales, profits, and dividends are fluctuating a firm whose sales, profits, and dividends are growing at annual average compound rate of 5 percent
The correct option is "a firm whose expected sales, profits, and dividends are fluctuating" for the constant growth model of dividend.
Define the term constant growth model of dividend?A Constant Growth Model is a method of assessing shares. It also goes by the name Gordon Growth Model and is based on the idea that a company's dividend payments will always increase at a fixed pace.
It aids investors in estimating the current reasonable amount to pay for such a stock in light of potential dividend payments.With a method that takes into account that the consistently rising dividend payout is important for the stock's value, one may determine the fair value of each share for a corporation that pays out a rising dividend. The minimum return on investment that investors will tolerate in order to keep the stock is known as the Required Rate of Return (RRR). In rare instances, the market assessments for a stock's fair value could differ from the counts calculated through using Gordon Growth Model. This does not imply that the equation is flawed. In actuality, it indicates that the dividend stream's forecast was incorrect.Thus, for the following corporations, except one whose anticipated sales, profitability, and dividends are volatile, may be valued to use the constant growth dividend model.
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If a __________ strategy is effective, consumers will go to a store and ask for products that they have seen advertised.
If a Pull strategy is effective, consumers will go to a store and ask for products that they have seen advertised.
To get the customer to come to you, use a pull strategy. Pull strategy, or the communication of information to draw the customer, involves using pull tactics rather than pushing your business on them. Frequently, these clients will start to promote your company on your behalf. For instance, if you made the decision to start a neighborhood restaurant, you might use some particular strategies to attract customers.
First, you might employ advertising and mass media promotion techniques like running radio or television commercials, handing out flyers, supporting athletic teams, or using social media to reach out to as many customers as you can. By creating a social media page and hanging flyers, your restaurant might want to start out modestly.
As the company expands, you might invest money in a few more promotions. A large portion of a marketing budget is frequently required for this strategy. By creating a social media page and hanging flyers, your restaurant might want to start out modestly. As the company expands, you might invest money in a few more promotions.
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understand the different types of modifications that companies can use to increase demand for their products (product, quality, functional, aesthetic).
The product's packaging is altered as part of this strategy. These enhancements may be required as a result of new packaging methods being developed or a flaw in the product's current packaging; or as a result of customer suggestions for changes.
What are the four kinds of product changes?
Line Augmentations.Changes to the product.Changes to the qualityModifications to the function.Changes to the appearanceWhat exactly are product alterations?
any significant alteration in the attributes (size, form, color, style, cost, etc.)of an item; Most of the time, a product is changed to try to make it better and get more people to buy it.
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allowance for doubtful accounts is a(n) -asset account and has a normal balance. (enter only one word per blank.)
Answer:
Contra
Credit
Explanation:
Allowance for doubtful accounts is a Contra - asset account and has a normal credit balance
the tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $1,160 per person. if one family member has doctor and prescription medication expenses of $3,000, what amount would the insurance company pay?
If the insurance provider covers 80% of out-of-hospital costs after an $1160 per person deductible, the amount they would pay is $1472.
The amount that the insurance provider would cover can be calculated by first deducting the individual deductible from the doctor and prescription drug costs, and then multiplying that sum by the percentage that the health insurance covers.
Given that each person's deductible is $1,160and that a visit to the doctor and prescription drugs will cost $3000,
$3000- $1160 = $1840
80% of the costs are covered by health insurance, therefore;
80% of the $1840was paid by the insurance company.
Insurance company payment: (80/100) 1840
Insurance company payment: 0.80 x 1840
The insurance provider made a payment of $1472.
Thus the amount paid by the insurance company will be $1472
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She sells seashells on a seashore But the value of these shells will fall Due to the laws of supply and demand No one wants to buy shells 'cause there's loads on the sand
Step 1: you must create a sense of scarcity Shells will sell much better if the people think they’re rare, you see Bare with me, take as many shells as you can find and hide 'em on an island stockpile 'em high until they’re rarer than a diamond
Step 2: you gotta make the people think that they want 'em Really want 'em, really freakin want 'em Hit 'em like Bronson Influencers, product placement, featured prime time entertainment If you haven’t got a shell then you're just a freaking wasteman
Three: it's monopoly, invest inside some property, start a corporation, make a logo, do it properly "Shells must sell", that will be your new philosophy Swallow all your morals they're a poor man's quality
Four: expand, expand, expand, clear forest, make land, fresh blood on hand
Five: why just shells? Why limit your self? She sells seashells, sell oil as well!
Six: guns, sell stocks, sell diamonds, sell rocks, sell water to a fish, sell the time to a clock
Seven: press on the gas, take your foot off the brakes Run to be the president of the United States
Eight: big smile mate, big wave that's great Now the truth is overrated, tell lies out the gate
Nine: Polarise the people, controversy is the game It don't matter if they hate you if they all say your name
Ten: the world is yours, step out on a stage to a round of applause You're a liar, a cheat, a devil, on the floor And you sell seashells on the seashore
Answer:
Amazing story 10/10
Explanation:
This text is a fun and musical piece of writing that makes fun of different subjects like money, selling things, having an impact on others, and how power works.
What is the seashells about?This text talks about using the idea of selling seashells on a seashore to explain a bigger idea about how people can be manipulated and controlled by big companies and society.
This passage is written in a way that shows different aspects of a story. It covers things like creating a feeling of not having enough, changing how people think about things, and gaining more power.
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the stock of red's hardware closed at $57.10 per share today. tomorrow morning, the stock goes ex-dividend, paying a dividend of $1.70 per share. the tax rate on dividends is 25 percent. all else the same, what price will the stock open at tomorrow morning?
The stock open at tomorrow morning is: Ex-dividend price equal to $55.83
What is Ex-dividend price?A stock is referred to as being ex-dividend if it no longer carries the value of the upcoming dividend payment. The day the stock begins trading without the value of its upcoming dividend payment is known as the ex-dividend date or "ex-date."Dividend after taxes equals $1.70 (1 .25)
Dividend after taxes is $1.28.
$57.10 x 1.28 is the ex-dividend price.
$55.83 is the ex-dividend price.
The share price often declines by the dividend amount paid when a company goes ex-dividend to reflect the fact that new shareholders are not eligible for that payment. Earnings can be diluted when dividends are distributed as stock rather than cash, which may also have a short-term negative effect on share values.To learn more about Ex-dividend price refer to:
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a company sells a plant asset that originally cost $225,000 for $75,000 on december 31, 2014. the accumulated depreciation account had a balance of $90,000 after the current year's depreciation of $22,500 had been recorded. the company should recognize a
Based on the data above, the company should loss $60,000 on disposal. It can be calculated by subtract the original cost with asset's initial cost and also accumulated depreciation.
The disposal of a fixed asset can effect to the loss if the trade-in or also the cash allowance received is less than the book value of the asset. If a fixed asset that nothing is received in return and still has book value is discarded , the company also experiences a loss.
The calculation:
The disposal = original cost - ( asset's initial cost - accumulated depreciation)
The disposal = $75,000 - ($225,000 - $90,000)
The disposal = $60,000
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what is the first issue that needs to be addressed in order to properly report tangible and intangible assets?
The first issue that needs to be addressed in order to properly report tangible and intangible assets is "Determining the amounts to be included in the assets initial cost."
An intangible is an asset that is not physical in nature. Goodwill, brand recognition and property , like patents, trademarks, and copyrights, are all intangible assets. Intangible assets exist con to tangible assets, which include land, vehicles, equipment, and inventory.
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An advantage of synthesizing block copolymers is the ability to tune the properties of the material by varying the length of each block. Of the following block copolymers, which composition would have the highest degree of crystallinity?.
The composition that would have the highest degree of crystallinity is 50% PLA, 50% poly(6-decalactone). The correct option is A.
What are block copolymers?Block copolymers are a long chain of alternate copolymers. By using a dual functional initiator that can polymerize two types of monomers by two different methods, or by applying a site transformation reaction from one polymerization technique to another, copolymers can be created.
An example of a copolymer is acrylonitrile butadiene styrene, commonly used as rubber SBS.
Therefore, the correct option is A, 50% PLA, 50% poly(6-decalactone).
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The question is incomplete. Your most probably complete question is given below:
O 50% PLA, 50% poly(6-decalactone)
O 45% PLA, 55% poly(8-decalactone)
O 25% PLA, 75% poly(8-decalactone)
O 10% PLA, 90% poly(ö-decalactone)
O 75% PLA, 25% poly(5-decalactone)
Black Friday What do you think of shopping days like?
Shopping days like Black Friday are an easy way to buy products on a budget.
Black Friday is a day, mostly a Friday in the month of November, during which huge discounts are given on products by companies.
The Black Friday sales cover clothing, electronic appliances, food items, and almost everything.
Black Friday can be of huge help when you are trying to buy things at a discount. One should save up the money for this day and buy interested products on each day as they will be offered on a discount.
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in order for a service provider to use activity-based costing, they must have demand for reliable cost information and existence of
They must have demand for reliable cost information and existence of cost.
What is demand?Demand is an economic principle that describes a consumer's desire to buy a product or service. Demand is considered to be the price that consumers are willing to pay for a product or service. If we hold all other factors constant, demand should increase when prices fall and demand should fall when prices rise.
This simple principle keeps the market in balance. Markets and aggregate demand are used to understand demand for goods and services.
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for some time, sylvester has had $5 per month to spend on oranges and apples. the price of an orange is $0.50 and the price of an apple is $0.25. which chart(s) show(s) what happens to his budget line if his income increases to $6?
When revenue increases, the budget line is expanded. Sylvester can buy 24 apples and 12 Oranges when his income is $6.
All the combinations of goods and services that a consumer may buy at current prices within the range of his or her available income are represented by a budget constraint. The notions of a preference map and a budget restriction are used by consumer theory to investigate the criteria for customer decisions.
The budget line moves outward, parallel to the initial line, as revenue rises (holding prices constant). This implies that a consumer who has more money can purchase more of both products.
An expansion of the budget line happens when revenue rises. When his income reaches $6,
Sylvester can afford = Increased Income / Price of 1 apple
Affordable Apple = $6 / $0.25 = 24 apples
Therefore, if his income reaches $6, Sylvester can afford 24 apples.
Similarly, we can compute for Oranges:
Sylvester can afford = Increased Income / Price of 1 orange
Affordable Oranges = $6 / $0.50 = 12 Oranges
Therefore, if his income reaches $6, Sylvester can afford 12 Oranges
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What features should you present when demonstrating 2023 armada’s powerful acceleration?.
Variable Valve Event and Lift -5.6-liter V8 engine are the features you present when demonstrating 2023 armada’s powerful acceleration.
Acceleration is the price of exchange of the speed of an object with respect to time. Accelerations are vector quantities. The orientation of an object's acceleration is given through the orientation of the internet force acting on that item.
Acceleration, fee at which speed modifications with time, in phrases of both speed and route. A point or an object shifting in a directly line is elevated if it speeds up or slows down.
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the federal reserve, the securities and exchange commission, and the national labor relations board are all examples of
The federal reserve and the securities and exchange commission are all examples of independent regulatory agencies
The task of developing rules and regulations within a particular policy area is carried out by an independent regulatory agency that is separate from a significant cabinet department. Federal organizations that have been established by Congress with a specific degree of independence from the President are referred to as independent regulatory agencies.
The most significant characteristic of independent agencies is that they are held individually, in accordance with full legal requirements, from other parts of the United States federal government and funded by open-door corporations or private contributors. The Federal Reserve, the Securities and Exchange Commission, the Nuclear Regulatory Commission, the National Labor Relations Board, etc. are a few such examples.
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if a neoclassical model shows increasing wages in the economy over the long run, what else will likely occur? substantial short-term off-setting decrease in output short-run decrease in cyclical unemployment inflationary increase in price level change in government policy to decrease in aggregate demand
Inflation causes a country's currency to decrease its value. This results in the value of the products and services being constantly increasing.
What steps can the government take to lower total demand?Regardless of tax policy, aggregate demand declines as government spending does, moving the economy to the left. NX is the fourth term that will cause the aggregate demand curve to change (e). This phrase indicates that net exports, which are calculated as exports minus imports, depend on the real exchange rate. Fiscal policy is one way that policymakers can affect the overall demand. The aggregate-demand curve moves to the right in response to an increase in government spending or a decrease in taxation. The aggregate-demand curve moves to the left in response to a reduction in government spending or an increase in taxes. First, if government spending rises but taxes stay the same, demand rises directly. Second, if tax rates are lowered or transfer payments are raised,
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inditex, the parent company of international fashion retailer zara, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of a
The parent company of international fashion retailer zara, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of a corporate vertical marketing system
What is a corporate vertical marketing system?A system of channel organization for distribution where the ownership of the various levels of the system is shared to ensure the smooth flow of goods from producer to end-user.
Concentrate on a single industry. Specifically target their market's needs with a niche offering. deliver specialized and distinctive products. with other businesses are fiercely competitive.
A certain group of consumers is targeted in the development and marketing of products and services that are similar to each other or that are compatible with one another. Insurance, real estate, finance, heavy industry, retail, the transportation industry, healthcare, and the government are a few examples of bigger vertical markets.
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costs that do not change in total over wide ranges of volume. 2. technique that estimates profit or loss results when conditions change. 3. the sales level at which operating income is zero. 4. drop in sales a company can absorb without incurring an operating loss. 5. combination of products that make up total sales.
Match the terms with the correct definition.
1. Fixed costs: Expenses that remain the same overall across a wide range of volume.
2. Sensitivity analysis: A method for forecasting profit or loss when circumstances change.
3.Breakeven point:The sales level at which operational income is zero.
4. Margin of safety: The amount of a sales decline that a business can take without suffering an operating loss.
5. Sales mix: The assortment of products that contribute to total sales.
6. Contribution margin is the sum of net sales income and variable expenses.
7. Cost behavior: Explains how costs alter as volumes alter.
8. Variable costs: Expenses whose aggregate changes directly in relation to variations in volume.
9. The volume range that keeps both the total fixed costs and the variable cost per unit constant.
Each term must be paired with its corresponding accurate definition. The phrases are frequently used in relation to sales management and business.
For instance, fixed costs include indirect expenses like as rent, salaries, property taxes, insurance, depreciation, and more that remain constant overall over a wide range of volume and regardless of the degree of output (goods and services).
Additionally, variable costs include expenses such as sales commission, electricity costs, raw material costs, credit card fees, direct labour costs, etc. that alter overall in direct proportion to changes in the volume of goods and services.
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