that there is less demand in the economy. This results in a shift in the aggregate demand curve which is the total amount of goods and services demanded in the economy at an overall price level and time period. The aggregate demand curve represents the relationship between price levels and quantity of output that individuals are willing to provide. The reason unemployment remains high comes from a lack of demand. An aggregate demand downfall is the kind of problem monetary policy can address. We need
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(a) Aggregate Output/Income 2‚000 2‚500 3‚000 3‚500 4‚000 4‚500 5‚000 5‚500 Consumption 2‚100 2‚500 2‚900 3‚300 3‚700 4‚100 4‚500 4‚900 Planned Investment 300 300 300 300 300 300 300 300 Saving –100 0 +100 +200 +300 +400 +500 +600 Unplanned Inventory –400 –300 –200 –100 0 +100 +200 +300 Equilibrium Output Y* = 4‚000. When Y < 4‚000‚ inventories are lower than desired (unplanned investment is negative). Firms will increase production to increase their inventories‚ causing aggregate output/income
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and key news. Key Findings Peruvian defense expenditure recorded a CAGR of 5.93% between 2010 and 2014‚ and valued US$2.5 billion in 2014 JSB Market Research Pvt. Ltd. Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 / +91 - 998 729 5242 Published by- http:/www.jsbmarketresearch.com/ The country’s total defense expenditure during the forecast period is expected to be US$14.7billion The average share of capital expenditure is expected to be 12.3% over the forecast period
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CASE STUDY ON CASH BUDGETING Party Favours Limited (PFL) distributes party supplies and novelties through a network of independent‚ dedicated sales people across Canada. PFL plans to expand its network of sales distribution network into western Canada and consequently forecasts sales to total $5.6 million and $5.8 million in calendar years 2011 and 2012 respectively. PFL has been in operation for over ten years‚ and therefore has a strong understanding of the seasonal sales cycle that party
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capacity. No capital investment‚ other than capital expenditures that offset the depreciation amount. - Market share decrease from 35% (1973) to 30% (1985) - Market prices increase to US$ 1‚370 per ton (7% p.a.) Strategy alternatives NOTE: WACC of 15% 1 Incremental cash flows over the “Do-Nothing” strategy 2 US$ of NPV per US$ of Working Capital and Capital Expenditures‚ net of Tax Credits. The investment in working capital and capital expenditures required under Growth is US$532m; under Maintenance
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AGGREGATE DEMAND - the total spending on goods and services in a period of time at a given price level C + I + G + (X – M) C = Consumption o The total spending by consumers on domestic goods and services ▪ Durable goods: used by consumers over a period of time (i.e. cars‚ computers‚ mobile phones) ▪ Non – durable goods: used up immediately or over a short time span (i.e. rice‚ toilet paper‚ newspapers) o Causes of change in consumption ▪ Changes in income –
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Characteristics of Telco Industry Market structure is either a: Monopoly Natural monopoly Oligopoly Dominated by a handful of big players High capital expenditure (capex) Absolute fixed cost is high But fixed cost per user is very low Telco may be very cash flow rich if capex is controlled Low operating expenditure (opex) Average cost per user is very‚ very‚ VERY low. Generic Characteristics of Telco Industry Lines of business Voice Traditional fixed lines overtaken
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Question 1: What is your GENERAL assessment of Shurgard’s business? How has it performed‚ to date‚ in the US? Before performing any detailed valuation analysis‚ do you expect Shurgard to succeed in Europe? Our assessment of Shurgard’s business is that it is a company which has taken advantage of every single opportunity it has had. We consider them visionaries in the business of the self-storage. Step by step they have built such a “self-storage empire”. Firstly in the US and then in Europe‚
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1. Do all international financial transactions necessarily involve exchanging one nation’s distinct currency for another? Explain. Could a nation that neither imports goods and services nor exports goods and services still engage in international financial transactions? LO1 Answer: The answer is almost certainly a yes. Only in rare cases would you find barter exchanges (goods and services for other goods and services). Yes‚ they could engage in financial transactions (the exchange of assets across
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Task one‚ P1. The Main Purpose of Accounting Keeping track of transactions and recording revenue and expenses are an important process‚ often assigned to an accounting department or a financial manager. Accounting allows companies to provide reports and insights needed to make sound financial decisions. The main purpose of accounting is to identify and record all activities of the income and the outcome that will affect the organisation financially. All activities‚ including purchases‚ sales
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