Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economyâs multiplier is 3.If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level?

Answers

Answer 1
Answer:

Answer: Aggregate Demand will shift by $25 billion dollars at each price level

Explanation:

1 % rise in Household wealth increases , Consumer Spending by $5 Billion. We can assume that when Household wealth Decreases by 1% consumer spending decreases by $5 billion dollars.

if Household Wealth Decreases by 5% aggregate demand will fall by $25 Billion (1% represents 5 Billion, so 5% will be $5 Billion x 5). Aggregate Demand Curve will initially shift by $25 billion at each price level when household wealth Falls by 5%


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Your order is supposed to be delivered between 5PM-6PM, and it’s now 5:45PM. You’re stuck in a long line waiting to check out. In this situation, you will be late delivering the order. Provide an example of the text message you would send to the member.

Answers

Explanation:

If I am stuck in a long line waiting to check out and I was supposed to deliver the parcel between 5 PM to 6 PM, then I will text the receiver telling him about my problem and tell him that his order will be delivered late and will give him a time boundary. My text message to him will look like the following:

Hi Sir/Madam,

This is abc from xyz company. Your parcel was scheduled to deliver between 5 PM to 6 PM, but due to some uncertain situation, there is a short delay in the delivery. Your parcel is hoped to deliver within the next one hour.

Your patience will be highly appreciated, and apologies for the delay.

Best Regards.

A sample of the text message sent to apologize for the delay would look like this:

This is ABC from XYZ company. Your parcel was scheduled to deliver between 5 PM to 6 PM, but due to some unforeseen delays, we would deliver within the next hour.

Your patience will be highly appreciated, and apologies for the delay.

What is an Apology?

This is a statement that shows that a person is sorry for the action and would want to rectify the situation.

Hence, we can see that based on the hypothetical situation about sending a parcel and not delivering on time, an apology text needs to be sent and it is shown above.

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2. Alternative explanations of wage disparities Suppose that a labor economist claims that recipients of economics Ph.D.s gain little in terms of acquired productive skills from their graduate studies but that, instead, the degree simply reflects a high level of inherent mathematical ability. Which one of the following characterizes the labor economist's perspective on the link between education and wages?

A. Compensating differentials
B. Human capital
C. Signaling
D. The superstar phenomenon

A famous rapper has earned enormous sums of money by supplying creative music to millions of fans. Which of the following statements characterize this market in which some earn astronomical incomes while others (who may have similar talent) earn very little? Check all that apply.

A. Because of technology, his music is essentially a public good
B. The best recording artists have high levels of human capital
C. The best recording artists earn dramatically more than good or mediocre artists
D. Customers in this type of market prefer having twice as much of a good from a recording artist half as talented as the superstar
E. Nearly all customers in the market desire the good supplied by the superstar.

Answers

2. The link between education and wages is established with the signaling theory of education.

3.  The best recording artists earn dramatically more than good or mediocre artists and Nearly all customers in the market desire the good supplied by the superstar.

The signaling theory states that people's future ability to be productive and earn more wages could be judged based on their educational level.

However, it also explains the independent behavior of productivity from education and does not guarantee efficient productivity from highly educated people.

The markets where one person may earn enormously more than others are seen in the music industry. It is because artists who can spend more on music are able to reduce their musical flaws than those who do not have much money to make great musical recordings.

Similarly, products that are endorsed by super starts earn more sellings than others as customers trust products more that are endorsed by their favorite celebrities.

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Answer:

2.

C. Signaling.

3.

E. Nearly all customers in the market desire the good supplied by the superstar.

C. The best recording artists earned dramatically more than good or mediocre artists.

Explanation:

The corrects answers to the given questions are

2. C Signaling

According to signaling theory productivity is not dependent on education however education serves as a signal for higher productivity.

3.

E. Nearly all customers in the market desire the good supplied by the superstar.

C. The best recording artists earned dramatically more than good or mediocre artists.

The fans eagerly wait for their favorite artist to perform and this lets the artist earn enormous amount of money. The rapper has selected the strategy to supply creative music to his millions of fans who will keep listening to the music again and again this will enhance his popularity and will ultimately result in more money

In an attempt to have funds for a down payment in five years, james dupont plans to save $3,800 a year for the next five years. with an interest rate of 4 percent, what amount will james have available for a down payment after the five years?

Answers

The amount that James will have available for a down payment after the five years is $3648.

What is a down payment?

Down payment is the payment that is given in small divisions for a large amount of money. The cash upfront paid by the buyer in real estate transactions and other significant purchases is known as a down payment on a house.

For a home being used as a primary residence, down payments, which are typically a percentage of the purchase price.

To calculate the amount of available money for the down payment, we should first calculate the 4% of the amount of money which is $3,800

The interest rate is 4%

Calculate the interest rate of the money

4% of 3800 = 152

The amount is then subtracted by $3,800

3800 - 152 = 3648

Therefore, James will have $3648 available for the down payment after 5 years.

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1. Find 4% of 3800: 152

2. 3800-152

3. James will have $3648 available for the down payment after the 5 years.

You sell short 600 shares of Microsoft that are currently selling at $25 per share. You post the 40% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $24? (Ignore any dividends.) Multiple Choice 10.00% 7.50% 17.50% 5.00%

Answers

Answer:

10.00%

Explanation:

Calculation for what will be your rate of return after 1 year if Microsoft is selling at $24

Using this formula

Rate of return = (Current price - Initial price ) /Current price *margin

Let plug in the formula

Rate of return=($25 per share-$24)/$25 per share*0.40

Rate of return=$1/10

Rate of return=0.1*100

Rate of return=10.00%

Therefore what will be your rate of return after 1 year if Microsoft is selling at $24 is 10.00%

Final answer:

In this short sale, the initial selling price of the shares was $15,000. A 40% margin was posted, amounting to $6,000. After the price dropped to $24 per share, the shares were bought back for $14,400. The profit gained, which is $600, is divided by the initial investment to obtain a rate of return of 10%.

Explanation:

In a short sale, the initial transaction involves selling a borrowed stock in the hopes of buying it back later at a lower price to earn a profit. The rate of return in a short sale is calculated using the profit earned from the short sale divided by the amount of capital invested originally.

First, we need to calculate how much the total value of the shares was at the time of selling short, so that’s 600 shares × $25/share = $15,000. You posted a 40% margin for the short sale, which means you committed $6,000 (40% of $15,000).

After one year, the Microsoft stock drops to $24 per share. At that price, you can buy back all 600 shares for 600 shares × $24/share = $14,400. The difference between the amount you sold the shares for and what you bought them back at is $15,000 - $14,400 = $600.

Now to calculate the rate of return, take the profit ($600) and divide by the amount of capital originally committed to the transaction ($6,000), so the rate of return is $600 / $6,000 = 0.10 or 10%.

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What are 3 benefits of the Pay down credit card feature in Quickbooks Online?A. It allows users to electronically pay their credit card balances from within QuickBooks Online


B. It prevents miscategorization of credit card payment transactions


C. It helps users identify which credit cards have interest rates that are too high


D. It provides easy-to-understand language for non-accountant users


E. It prevents common errors that affect the company's financial statements


F. It compares your client's credit card balances side by side

Answers

The  3 benefits of the Pay down credit card feature in Quickbooks Online are: Option B,E and F

B. It prevents miscategorization of credit card payment transactions

E. It prevents common errors that affect the company's financial statements

F. It compares your client's credit card balances side by side

•It help to prevents miscategorization of credit card payment transactions as it enables all the credit card payment transaction to designated or allocated to the right person who made the transaction.

• It help to prevents common errors that affect the company's financial statements such as error of  reversal  example is recording a transaction amount as $25 instead of $52.

• It help to compares your client's credit card balances side by side which help to prevent error as the credit card are easily evaluated.

Inconclusion The  3 benefits of the Pay down credit card feature in Quickbooks Online are: Option B,E and F

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Answer:

b or e

Explanation:

he following information relates to Jay Co.'s accounts receivable for 2004: Accounts receivable, 1/1/04 $650,000 Credit sales for 2004 2,700,000 Sales returns for 2004 75,000 Accounts written off during 2004 40,000 Collections from customers during 2004 2,150,000 Estimated future sales returns at 12/31/04 50,000 Estimated uncollectible accounts at 12/31/04 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, on December 31, 2004?

Answers

Answer:

$1,085,000

Explanation:

Given that,

Accounts receivable, 1/1/04 = $650,000

Credit sales for 2004 = 2,700,000

Sales returns for 2004 = 75,000

Accounts written off during 2004 = 40,000

Collections from customers during 2004 = 2,150,000

Estimated future sales returns at 12/31/04 = 50,000

Estimated uncollectible accounts at 12/31/04 = 110,000

Receivable before allowances for sales returns and uncollectible accounts:

= Accounts receivable, 1/1/04 + Credit sales for 2004 - Accounts written off during 2004 - Collections from customers during 2004 - Sales return

= $ 650,000 + $2,700,000 - $40,000 - $2,150,000 - 75,000

= $1,085,000

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