This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Past expenses are irrelevant to supply decisions, because A) expenses incurred in the past never ... (Read 159 times)

KimWrice

  • Hero Member
  • *****
  • Posts: 579
on: Jun 29, 2018
Past expenses are irrelevant to supply decisions, because
 
  A) expenses incurred in the past never affect the opportunities available in the present.
  B) it is essential to avoid bankruptcy.
  C) no one remembers the past.
  D) supply decisions depend on opportunities that will have to be forgone, not opportunities already forgone.

Question 2

What is the aggregate demand multiplier and why does it occur?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

meganlapinski

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The aggregate demand multiplier is an effect that magnifies changes in expenditure plans. So, for example, if some component of expenditure such as investment increases, aggregate demand increases by more than the increase in investment. The aggregate demand multiplier exists because when aggregate demand increases, households' incomes increase. Then the increase in income results in an increase in consumption expenditure, which adds to the initial increase in aggregate demand.


KimWrice

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Wow, this really help

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Common sites of amputation. (A) Upper extremities. (B) Lower extremities. The surgeon determines th Common sites of amputation. (A) Upper extremities. (B) Lower extremities. The surgeon determines th
Blood supply to the pituitary gland Blood supply to the pituitary gland
Past Human Past Human
In the past year, about one in five adults in the United States reported symptoms of anxiety ... In the past year, about one in five adults in the United States reported symptoms of anxiety ...
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply What mass, in grams, of a 5.00% by mass sugar water solution is needed to supply
Video: Interpreting a cladogram Animation

For a complete list of videos, visit our video library