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 97 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
YES! Correct, THANKS for helping me on my review

recede

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

The role of the liver in fuel supply to the blood. The role of the liver in fuel supply to the blood.
Moral Decisions and the vmPFC Moral Decisions and the vmPFC
Rate of Residential Change, Past Year, in the United States Rate of Residential Change, Past Year, in the United States
Over the past four decades, the self-reported health of married men and women has remained high, ... Over the past four decades, the self-reported health of married men and women has remained high, ...
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 ...
Who's Policing the Food Supply? Who's Policing the Food Supply?
Video: Wound Repair Animation

For a complete list of videos, visit our video library