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It is 2012, and real GDP in the U. S. economy is in an expansion phase of the business cycle. Consumption expenditure and other components of aggregate expenditure are increasing. Autonomous expenditure is increasing. Explain how these events will influence equilibrium expenditure and the quantity of real GDP demanded in the United States.
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Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?
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Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.
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Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.
Answers: 3
It is 2012, and real GDP in the U. S. economy is in an expansion phase of the business cycle. Consu...
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