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On the aggregate expenditure graph if autonomous investment decreased by 10 billion what happens to the aggregate expenditure line and planned savings?
Wiki User
∙ 12y ago
autonomous onvestment cant be decreased
Wiki User
∙ 12y ago
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Explain the effect of financial crisis taken place in the west using circular flows of income?
The balance of the circular flow of income is disrupted by the crisis. In short, withdrawals have increased and injections have decreased. 1) Because of the huge national and international debt within our economy, the government raises taxation and decreases government expenditure. The households have lower income and the firms aren't being funded anymore by the government. Thus people have less money to spend and firms aren't able to expand. 2) Because of the instability of the economy and the dip in confidence, households tend to save their money instead of spend it. Additionally, financial institutions only invest when they expect the value to rise - which is not the case today and so investment goes down. 3) Because of the fall in expenditure and investment, the firms have to cut their cost and they do so by decreasing wages and firing their workers. The households have therefore less money to spend and so they consume less products which results into the firms having lower profit. In a crisis, the circular flow of income becomes a vicious circle. The fall in injections decreases aggregate demand which leads to the fall in aggregate supply. The economy thus shrinks.
What was a demand of populists?
Decreased immagration Apex :)
Why has the primary and secondary sector decreased?
The primary sector has decreased becasue it wants too =) The secindary sector has aso decreased becasue it has .
What did the Populists demand?
Decreased Immigration
Objectives of Fiscal Policy?
Fiscal policy is when the government utilizes spending and / or taxation in order to achieve certain economic goals. For example, by cutting taxes or spending money, the government hopes to stimulate economic activities. By increasing taxes or decreasing spending, it might be trying to slow down economic activity to prevent inflation.Objectives of Fiscal Policy?Fiscal policy is the policy concerning the revenue expenditure and debt of the Government for achieving certain objectives like control of inflation, public expenditure etc. Fiscal policy defines as "the conscious attempts of Government to achieve certain macro goals of policy by altering the volume and pattern or its revenue and expenditure and balance between them".1. Full Employment: the main aim of every Government is to attain full employment level. "Full employment simply means that man power is ready to work at a prevailing wage rate without any dispute.'' In order to achieve full employment level, Government increases public expenditure to raise aggregate demand and tax rate is decreased.2. Price Stability: - When price rise i.e. inflation in an economy, fiscal policy aims at decrease in demand and aggregate expenditure and tax rate is also raised. Extra purchasing power of people goes into the hands of general public and demand decreases because of excess supply, prices automatically go down because of fear of stocks.3. Reduction in Economic inequality: - In a democratic country like India the prominent aim of fiscal policy is remove economic inequality. To remove economic inequality progressive direct taxes like income tax, property tax are levied at a higher scale because the burden of such taxes generally falls on rich people. The income generated from these taxes is used for the welfare of the poor masses and to raise their standard of living.4. Economic Development: - Economic development is an important feature of underdeveloped countries. To achieve development of a country, fiscal policy acts as a source of capital formation because as capital formation is increased, production and employment also increases.pradeepkalari (pradeep sp)
What is thermic effect of feeding?
It is an increase in energy expenditure following energy intake. It is decreased in obese individuals.
How is stockholder's equity increased by revenues and decreased by expenses?
Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity
Explain the effect of financial crisis taken place in the west using circular flows of income?
The balance of the circular flow of income is disrupted by the crisis. In short, withdrawals have increased and injections have decreased. 1) Because of the huge national and international debt within our economy, the government raises taxation and decreases government expenditure. The households have lower income and the firms aren't being funded anymore by the government. Thus people have less money to spend and firms aren't able to expand. 2) Because of the instability of the economy and the dip in confidence, households tend to save their money instead of spend it. Additionally, financial institutions only invest when they expect the value to rise - which is not the case today and so investment goes down. 3) Because of the fall in expenditure and investment, the firms have to cut their cost and they do so by decreasing wages and firing their workers. The households have therefore less money to spend and so they consume less products which results into the firms having lower profit. In a crisis, the circular flow of income becomes a vicious circle. The fall in injections decreases aggregate demand which leads to the fall in aggregate supply. The economy thus shrinks.
What is the distinction or differences between an incremental cost and sunk cost?
incremental cost are defined as the change in overall cost that result from particular decision making. it include both fixed cost and veriable cost. sunk cost are those cost which are made once and for all can't be altered incremental or decreased by varying the rate of output, nor can they be recovered. for example - once it is decided to make incremental investment expenditure and the fund are allocated and spend
What was the demand of the populist?
decreased Immigration
Fred invested 350 in the stock market. The value of his investment increased by 25 and then later decreased by 40. How much did the investment decrease in value from the time he first invested?
Total Investment= $35000+ $40000=$75000 Portfolio Beta = [(35000/75000) X .08] + [(40000/75000) X 1.4] = 0.78 Answer I came up with was 350 + 25% = 437.5 - 40% = 262.5
Has bullying numbers decreased?
Yes i decreased
Why has co2 in the air decreased?
It hasn't decreased.
How do you spell decreased?
You spelled decreased correctly. Example: His financial worries decreased after he found a job.
What was a demand of populists?
Decreased immagration Apex :)
Is accounts receivable increased or decreased by a credit?
decreased
What does decreased meann in mathh?
Decreased means reduced in math.
