Explain the process by which a decrease in durable goods orders at a constant price level changes
Question:
Explain the process by which a decrease in durable goods orders at a constant price level changes equilibrium expenditure and real GDP.
U.S. durable goods orders slump most in three years, the Commerce Department reported that orders for U.S. durable goods fell in January by the most in three years. Orders for commercial aircraft and business equipment fell most. Machinery orders dropped 10.4 percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
The decrease in planned investment in durable goods has a multiplier effect on equilibrium expenditu...View the full answer
Answered By
Danish Sohail
My objective is to become most reliable expert for clients. For last 10 years I have been associated with the field of accounting and finance. My aim is to strive for best results and pay particular attention to client needs. I am always enthusiastic to help clients for issues and concerns related to business studies. I can work on analysis of the financial statements, calculate different ratios and analysis of ratios. I can critically evaluate stock prices based on the financial analysis and valuation for companies using financial statements of the business entity being valued with use of excel tools. I have expertise to provide effective and reliable help for projects in corporate finance, equity investments, financial accounting, cost accounting, financial planning, business plans, marketing plans, performance measurement, budgeting, economic research, risk assessment, risk management, derivatives, fixed income investments, taxation, auditing, and financial performance analysis.
4.80+
78+ Reviews
112+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Explain the process by which a Steinway grand piano is constructed as a subsystem of a larger system. From what the text tells you, give some examples of how the production subsystem is affected by...
-
How does the monetary approach explain the process by which a balance of payments disequilibrium is corrected under a flexible exchange rate system? How does this differ from the case of fixed...
-
After noticing that Jennifers baby was not eating well and was small for his age, doctors tested him for drugs. When the test results proved positive, Jennifer admitted to police that she had...
-
Air pollution officials in Californias Central Valley have opened a new front in the war against urban sprawl, and regulators and environmental advocates throughout the state are watching closely....
-
Describe how organizational culture can influence team creativity.
-
The following data relate to the operation of Kramer Co.s pension plan in 2016. The pension worksheet for 2015 is provided in P20-10. For 2016, Kramer will use a discount rate of 8%. Instructions (a)...
-
Why a temporary restraining order or preliminary injunction may be necessary?
-
One-pound coffee cans are filled by a machine, sealed, and then weighed by a local coffee store. After adjusting for the weight of the can, any package that weighs less than 16 oz is cut out of the...
-
Required:a) Enter the opening balances from the October 2023 balance sheet into the general ledger accounts.d) Create the income statement, statement of owner's equity and the classified balance...
-
Suppose The Right Rig Dealership is opening a regional office in Omaha. Cary Regal, the office manager, is designing the internal control system. Regal proposes the following procedures for credit...
-
What determines the decrease in aggregate demand resulting from a decrease in durable goods orders? U.S. durable goods orders slump most in three years, the Commerce Department reported that orders...
-
Plot the short-run Phillips curve and aggregate supply curve for 2018 and mark the points A, B, C, and D on each curve that correspond to the data in the left part of the table. The left part of the...
-
Dyna Corporation had cost of goods sold of $300,000 for the current year ended December 31 and an ending inventory balance of $50,000. The beginning balances in inventory and accounts payable were...
-
A stone with a mass of 75.0 kg, starting from rest, falls a distance of 20.0 m into a shallow lake. (Assume it comes to rest immediately after it is submerged in the water.) The temperature of the...
-
What is creativity and innovation? (Concept of creativity and innovation) Give a real-life experience in organizational behavior issues related to creativity and innovation. Personal development...
-
Bill's Boards (BB) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to "keep the books." Unfortunately, William did not review...
-
Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the Alden, Boyd, and Carmel partnership: Alden (40%) Boyd (40%) Carmel (20%) $ 220,000...
-
Suppose your firm earns $2 million in taxable income. What is the firm's tax liability? What is the average tax rate? What is the marginal tax rate? 1. ii. Taxable Income 0 and under 50,000 50,000...
-
Can you think of situations where sentiment analysis might be helpful to analyze press releases or earnings announcements? What additional information might it provide that is not directly in the...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
A consumers consumption possibilities depend on all of the following items except ________. A. The prices of the goods that the consumer wants to buy B. The consumers budget C. The quantities of the...
-
Calculate the values of A, B, C, and D in the table. Does the principle of diminishing marginal utility apply to Bens consumption of orange juice? Why or why not? Use the table, which shows Bens...
-
Calculate the values of A, B, C, and D in the table. Does the principle of diminishing marginal utility apply to Bens consumption of orange juice? Why or why not? Use the table, which shows Bens...
-
2. After scouting a number of locations, your financial analysts have settled on a desirable location for one of the firm's new manufacturing plants. However, the state income and local property...
-
The "one-time good deal" Cash-For-Clunkers program offered by the federal government proved a temporary boon for car dealers. In addition to this program, dealers were eager to add their own...
-
1. You are Chief Financial Officer for a company that sells contact lenses by mail order to a notional market. Despite the national presence, the firm's facilities are all located in one state. Your...
Study smarter with the SolutionInn App