A company that wants to use scenes from the pixar movie soul in its advertising campaign would have to have a __________ with the pixar company to use the movie.

Answers

Answer 1

A company that wants to use scenes from Pixar movie soul in its advertising campaign would have to have a licensing agreement with the Pixar company to use movie.

What is a licensing agreement?

The licensor and the licensee are the two parties to a licensing agreement, which is a formal legal contract. The licensor typically grants the licensee permission to create and sell items, use the licensor's brand name or trademark, or make use of any patented technology in a licensing agreement. In return, the licensee typically consents to a number of restrictions on how to use the licensor's property and agrees to pay royalties. A wide range of well-known circumstances are covered by licensing agreements. Or a small manufacturer can, in order to acquire a competitive edge, license a proprietary production technology from a bigger company rather than investing the time and resources to try to develop its own technology.

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Related Questions

net income and cash flows provided by operations may differ because of the timing of cash receipts and payments versus the timing of recognition on the income statement. A. True B. False

Answers

(a) Simon Co. generated $1,580 in net cash flow from operations for the fiscal year that ended on December 31, 2020.

(b) Option A is the right response.

(a) Creation of an extract of the statement of cash flows

Simon Co.

For the year ending December 31, 2020, provide an extract of the statement of cash flows.

Net income                                                                 $840

Add: Depreciation and amortization expense           640

       Decrease in Accounts receivable                       90

       Increase in Income taxes payable                       70

       Less: Increase in Inventory                                   40

        Decrease in Accounts payable                           20

Net cash flows from operating activities                    $1,580

(b) Timing and recognition play a large role in the difference. Investors can assess the financial strength of a firm using the cash flows from operations, which is a useful tool. Since non-cash elements are subtracted from net income and changes in working capital, including current assets and current liabilities, are taken into account, this component of the cash flows is known as the cash version of net income.

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Full question is -

The financial statements of Simon Co. include the following items (amounts in thousands): Income Statement For the Year Ended December 31, 2020 Net income $ 840 Depreciation and amortization expense 640 At December 31 Balance Sheets 2020 2019 Accounts receivable $ 250 $ 340 Inventory 340 300 Accounts payable 160 180 Income taxes payable 100 30 Required: a. Calculate the net cash flow provided by operations for Simon Co. for the year ended December 31, 2020. (Enter your answer in thousands. (i.e., 20,000 should be entered as 20)) b. Net income and cash flows provided by operations may differ because of the timing of cash receipts and payments versus the timing of recognition on the income statement.

a.True

b.False

a us company that hires another us company, such as automatic data processing corporation (adp) to process all of its corporate payroll functions is engaging in

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Outsourcing is the practice of a US company contracting with another US company, such as Automatic Data Processing Corporation (ADP), to handle all of its corporate payroll operations.

How Does Outsourcing Work?

Outsourcing is the practice of employing third parties to carry out activities that were previously carried out by the company and was first recognized as a formal business strategy in 1989. Outsourcing is frequently employed so that a business can concentrate on its core functions. Among other things, it is used to reduce the cost of labor. While privacy has recently been a contentious issue for contractors that outsource work, it has also come under fire for its effects on the labor market in domestic economies.

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Priscilla owns a factory that produces kayaks. She is trying to decide whether to continue using her one of her current pieces of equipment or replacing it with more updated equipment. Which of the following does Priscilla not need to consider?
a. cost of the new equipment. b. the book value of the old equipment. c. annual operating cost of the new equipment d. book value of the old equipment

Answers

Priscilla does not need to consider the cost of the new equipment.

Originally used by the Inuit, kayaks are a sort of canoe with a light frame and a watertight covering that has a tiny space in the top to sit in.

As a type of compact watercraft, kayaks are renowned for their exceptional design. A boat that is quick, strong, and simple to turn may be modified for calm lakes, swift rivers, and rough seas thanks to its light hull, covered top, and shallow base.

Instead of continuing to use her outdated pieces of equipment, Priscilla could swap them out for more modern ones.She shouldn't consider the price of the new equipment as a result.

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between january 2012 and january 2019, u.s. employment increased by 17.3 million workers, but the number of unemployed workers declined by only 6.3 million. true or false: the labor force has increased.

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It is false, because the labor force is the sum of the employed and the unemployed. So the fact that employment has increased by 17.3 million and unemployed has decreased by 6.3 million means that the labor force has increased by 11 million.

What is the difference between labor force and workforce?

Labor force refers to the number of people who are actually working or willing to work. However, work force refers to the number of people actually working. Therefore, workforce do not count those who work willingly. The difference between them is the total number of unemployed people.

What is the meaning of labor force?The labor force is the sum of the employed and the unemployed, and the unemployment rate is the number of unemployed divided by the labor force. An employee is a person who works at least one hour for her wages or for her own company at any time of the week, including his 12th day of the month. Example: This includes full-time, part-time and freelancers. This includes people who receive hourly wages, salaries, or are paid under a contract. The total labor force includes all persons aged 16 and over who are not retired.

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nora thinks her company should use a push strategy for its new product line because it needs to educate consumers on how to use the product. how does a push strategy promote products? multiple choice personal selling indirect promotions industry-wide promotions mass media advertising

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Push strategy promotes the products by personal selling.

What is personal selling?

When a salesperson meets with a potential client to close a deal, personal selling is taking place. The majority of salespeople follow a sequential sales process that usually consists of nine steps. The sales process is applicable to both telemarketing and in-person interactions. The Socratic philosophers had some concerns about the novel selling in the fourth century BCE. The main focus of their analysis was on the potential disruption of selling's more social components. Traditional exchange methods cultivated the social perspective that emphasizes the connections that bind society's members. For instance, during times of famine or drought, people shared in their neighbors' suffering.

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the economic model pattern that describes concentric circles of similar economic/agricultural activities around a central market/business district is known as:

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An economic model or a pattern that helps in describing about the concentric circles of similar economic/agricultural activities around a central market/business district is known as von Thunen rings. Therefore, the option A holds true.

An economic model can be referred to or considered as a model, which is based on the graphical or pictorial representation of economic studies and theories throughout their entirety. The model with concentric circles for representing the business districts is known as the model of von Thunen rings.

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Complete question

The economic model pattern that describes concentric circles of similar economic/agricultural activities around a central market/business district is known as:

- von Thunen rings

- Peripheral model

- Sector model

- Multiple nuclei model

5.92 points ebookprintreferencescheck my workcheck my work button is now disabled2item 17 northern air would like to sell 3,300 shares of stock using dutch auction underwriting. the bids received are: bidder quantity price a 600 $ 29.15 b 700 28.80 c 1,100 28.65 d 1,300 28.30 e 1,500 28.10 how much will the company raise in its offer? ignore all flotation and transaction costs. multiple choice

Answers

$93,390 will the company raise in its offer.

Placement:

Bidder A: 600 shares at $29.15 (3300 – 600 = 2700 shares remaining)

Bidder B: 700 shares at $28.80 (2700 – 700 = 2000 shares remaining)

Bidder C: 1100 shares at $28.65 (2000 – 1100 = 900 shares remaining)

Bidder D: 1300 shares at $28.30 (900 – 900 = 0 shares remaining)

Bidder E: 1500 shares at $28.10

Hence, the stocks will be sold at $28.30.

A will get 600, B will get 700, C will get 1100, D will get 900 and E will get nothing

Total Amount Raised = 3300*28.30 = $93,390

A company , abbreviated as co., is a criminal entity representing an affiliation of people, whether herbal, felony or a combination of both, with a particular objective. organisation participants percentage a common reason and unite to reap particular, declared goals.

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The Magnanimous Company uses a predetermined overhead rate of $12 per direct labor hour to apply overhead. During the year, 30,000 direct labor hours were worked. Actual overhead costs for the year were $320,000. The overhead variance is:
$36,000 overapplied
$40,000 overapplied
$35,560 underapplied
$40,000 underapplied
none of the above

Answers

Option b is correct. Actual overhead costs for the year were $320,000. The overhead variance is $40,000 overapplied.

Applied overhead is equal to 12 x 30,000, or 360,000.

$320,000 is the actual overhead.

Applying, $40,000 overapplied.

An allocation rate known as the predetermined overhead rate allocates a specific amount of manufacturing overhead to job orders or goods. Many businesses divide the anticipated manufacturing overhead expenses by an allocation base to get at predefined overhead, which is calculated at the start of each reporting period. The allocation base is frequently referred to as the activity driver or cost driver.

Cost accounting terms are allocation basis. In manufacturing accounting teams, the following allocation bases are frequently used:

The number of service calls and machine hours

Kilowatt-hours consumed Area

Employees and hours worked.

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allowing someone to telecommute for work is an example of which aspect of the control-demand model of job stress?

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By removing office distractions, allowing your staff to work from home can actually enhance productivity.

What is control-demand model of job stress?

The demand-control model predicts that although having great control over one's employment will help mitigate the stress brought on by high work demands and, in turn, lessen the levels of work stress experienced by employees. High work demands typically result in high levels of stress for employees.

According to Karasek's argument, there are four categories of perceived work environments: low-strain, high-strain, passive, and active, depending on the relative levels (high or low) of these two job qualities (job control and job demands). One of the most frequent causes of stress at work has been identified as job demands. Long work hours and demanding shifts, intense time constraints, ergonomic issues, and unpleasant physical conditions, for instance, have a high risk of causing stress and having unfavorable long-term effects.

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Some GMAT questions will introduce the concept of interest earned on a Principal. These questions are easily identified by the use of the term "Interest" somewhere in the question (Duh!).
We recognize two different kinds of interest - Simple interest, and Compound interest. Look for the following three pieces of the puzzle in the question:
1) Interest rate - usually given as a %
2) Time - How long the interest is calculated for.
3) Compounded - Annually, semi-annually (every six months), quarterly, monthly.

Answers

Simple interest is calculated only on the principal.  John's loan will have incurred $600 after a six-month period.

Simple interest :

Simple interest is calculated by multiplying the daily interest rate by the principal amount by the number of days until the next payment. Simple interest benefits consumers who pay their loans on time or at the beginning of each month. Auto loans and short-term personal loans are usually simple interest loans.

Solving the puzzle given :

Simple interest is calculated only on the principal. The formula for simple interest is principal x interest rate x hours.

1) The question explicitly uses the term “simple interest”

2) The interest calculation period is shorter than the specified interest period.

Example: 12% annual interest calculated after 6 months.

Solving for 3

Example:

John takes out a $10,000 loan at an annual interest of 12%. How much interest will the loan incur after six months?

Notice the following:

1) Interest rate = 12% annual

2) Time - 6 months. Interest is an annual interest rate, so use time as a fraction of 6 months / 12 months = 1/2 year. Since the calculation period is shorter than the specified interest period, this is an indicator for using simple interest.

3) Compound interest - not mentioned - Another reason to use the simple formula.

Resolution: use the simple interest formula =

                            $10000 × 12% × ½

                             = 1200 × ½

                                  = $600.

John's loan will have incurred $600 after a six-month period.

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which asset has the highest liquidity? group of answer choices 500 shares of apple stock deposits in a savings account a rembrandt painting a vacation home

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The asset , which has highest liquidity will be cash.

Because cash could be just now in the form of money, it serves as the most liquid asset. Physical currency, savings account balances, as well as checking account balances are all included. Foreign currency is also included, albeit certain foreign currencies could be challenging to convert into a relatively local currency.

Cash serves as the most liquid asset, commodities have varying levels of liquidity, and fixed assets are often nonliquid. Real estate, for instance, would not be regarded a liquid asset.

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1. if a contingent liability is probable and the amount of the liability can be reasonably estimated, it is

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A financial statement will contain the contingency if it is probable and the amount of liability is probable, the contingent obligation be added as a footnote to a financial statement.

In the financial statements, how are contingent liabilities handled?

A company's financial statements never include contingent liabilities. Although these duties have not yet materialized, they might do so in the future. Therefore, a contingent liability is not treated in an accounting sense. These contingent liabilities now need to be examined annually.

When should a company disclose contingent liabilities?

If a liability is conceivably feasible but not probable, or if a liability is probable but the amount cannot be estimated, disclose the presence of the liability in the notes to the financial statements.

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currently andrews is paying a dividend of $19.00 (per share). if this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?

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Andrews is now disbursing a $19.00 dividend (per share). If the stock price increased by 10% while the dividend remained the same, then the dividend yield will decline.

What is Dividend yield?

The amount of money a firm pays shareholders for owning a share of its stock divided by its current stock price is known as the dividend-yield, which is represented as a percentage.

The dividend yield is a projection of a stock investment's return on dividends alone. The yield will increase when the price of the stock decreases, assuming that the dividend is not increased or decreased.

In the opposite scenario, it will decrease when the stock price increases. Because dividend yields fluctuate in relation to stock prices, they may appear disproportionately high for stocks that are depreciating rapidly.

Therefore if dividends were remain same and the price will rise then yield will decline. Here the price of stock is not given then unable to find the percentage.

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What factors caused the great depression to spread around the world? select three answers.
a. americans stopped buying from overseas nations.
b. large numbers of jobless americans moved overseas.
c. many countries raised tariffs on imported goods.
d. stock markets started to crash in many other nations.
e. americans demanded repayment of european loans.

Answers

The factors that caused the great depression to spread around the world are (a) .Americans stopped buying from overseas nations.

Many nations increased import duties. Americans insisted that European debts be repaid. The Great Depression, which lasted from 1929 to 1939, was the worst economic downturn in the history of the industrialized world. It started after the 1929 stock market catastrophe, which paralysed Wall Street and caused the loss of millions of investors.

The Federal Reserve had previously led to banks becoming less eager to lend money to the general public. Earlier, the stock market also experienced a dip.

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Answer:

A.) Americans stopped buying from overseas nations.

C.) Many countries raised tariffs on imported goods.

E.) Americans demanded repayment of European loans.

Explanation:

edge

the incorporates a point of view toward the material dramatized in the script, a comedy or tragedy for example, whereas the must understand this point of view and translate it in ways appropriate for the production.

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The playwright incorporates a point of view toward the material dramatized in the script, a comedy or tragedy for example, whereas the director must understand this point of view and translate it in ways appropriate for the production.

A play or drama writing is a story written for actors to perform, with 'play' referring to a theatrical performance. Playwrights are the people who write them, and the physical scripts are sometimes referred to as manuscripts, while some historical scripts are referred to as folios due to their format.

A list of characters will be included in a play script (at the very beginning). It could be divided into acts, which could then be subdivided into scenes. Each scene will begin with a description of the setting, followed by the characters' dialogue.

The _____ incorporates a point of view toward the material dramatized in the script, a comedy or tragedy for example, whereas the ____ must understand this point of view and translate it in ways appropriate for the production.

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Two of the most influential international agencies, the International Monetary Fund and the World Bank, were designed to establish a stable economic landscape and were established in 1944 at...
Bretton Woods

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In order to create a stable economic environment, the International Monetary Fund and the World Bank, two of the most significant international organizations, were founded in 1944 at Bretton woods

Following the 1944 Bretton Woods Agreement, the Bretton Woods system of monetary management established the guidelines for trade and financial relations among the United States, Canada, Western European nations, Australia, and Japan. The Bretton Woods system served as the first illustration of a fully negotiated monetary order meant to regulate monetary relations between independent states.

The U.S. dollar was tied to the value of other currencies under the Bretton Woods System, which used gold as its foundation. Early in the 1970s, President Richard M. Nixon declared that the United States would no longer exchange gold for dollars, essentially ending the Bretton Woods System.

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In the cash flow information for the ping kings project, ping spent $300,000 for research and development of the golf clubs. Ping's tax rate is 25%. How much of this cost should be included in the initial (t = 0) cash flow for this project?.

Answers

The initial (t = 0) cash flow for the Ping Kings' Project should account for $300,000 of the expenditure.

Should the costs of research and development be capitalized?

For the majority of businesses, research and development is an investment that will pay off over a number of years in terms of revenue, cash flow, and profit; as a result, it should ideally be capitalized as an asset rather than expensed.

Research and development costs are regarded as sunk costs under U.S. GAAP and should not be capitalized.

Why is R&D a cost rather than a capital expense?

The major reason businesses aren't allowed to capitalize their R&D expenses is because it's impossible to accurately estimate the charges' potential return on investment. Research and development involves a lot of trial and error.

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for their hostile financial takeovers, entrepreneurs like michael milken and ivan boesky used high-risk securities known as

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For their hostile financial takeovers, entrepreneurs like Michael Milken and Ivan Boesky used high-risk securities known as Junk bonds.

Entrepreneurship is the introduction or extraction of economic price.[1][2][3] With this definition, entrepreneurship is viewed as an exchange, commonly entailing risk beyond what is generally encountered in beginning a commercial enterprise, which can also encompass different values than sincerely monetary ones. An entrepreneur is an person who creates and/or invests in a single or more organizations, bearing maximum of the risks and enjoying most of the rewards.

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cheryl and roberto just signed a contract for cheryl to buy roberto’s house for $235,000. roberto owes $48,750 on his current mortgage, he’s going to replace the old furnace ($800), he’s agreed to pay 3% toward closing costs, and he’ll pay a 6% commission to his agent. how much in whole dollars will he have left to put down on the condo he wants to buy?

Answers

How much in whole dollars will he have left to put down on the condo he wants to buy? $164,300

Roberto's closing costs will be $7,050($235,000 x0.03) and commission will be $14,100($235,000 x0.06).

Subtract those two amounts, the furnace cost ($800),and the mortgage loan pay off ($48,750) from $235,000 to get $164,300

Dollars - In the beginning, a silver coin that circulated in many countries; nowadays, the name of the usual economic unit in the united states, Canada, Australia, New Zealand, and different countries. The Spanish peso, or piece of 8, which circulated within the Spanish and English colonies in the usa, become referred to as a dollar by means of the English-speaking peoples. Familiarity with this coin resulted in the official designation of the us monetary unit because the dollar in 1792. Canada followed the dollar and monetary decimal machine in 1858; Australia in 1966; and New Zealand in 1967.

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according to the epo's interactive patent information tour, in exchange for rights of protection on their inventions, patents require inventors to:

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According to the EPO interactive patent information tour, in exchange for rights of protection on their inventions, patents require inventors to :An inventor must apply for a patent within one year of selling the product commercially. Infingement.

A smart card is a credit-card-sized plastic card containing a microprocessor and a small amount of memory. Very early in the planning process for its online services, the EPO decided to store certificates on smart cards that would enable users to make secure transactions.

Legal status information for European and Euro-interactive applications (ie where the patent is valid) is available from the EPO's free online European Patent Register. Here, including the patent grant stage (and all objections/complaints .

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Neon Lighting is comparing actual and applied overhead amounts at the end of the year and finds the factory overhead account has a credit balance. What does this mean
a.Actual costs are higher than applied costs.
b.The entire balance is charged back to work in process inventory.
c. Applied costs are higher than actual costs.
d. The balance should be carried over from year to year.

Answers

The entire balance is charged back to the inventory of work-in-progress. overhead account has a credit balance means Actual costs are greater than applied costs.

What exactly is a credit balance?

The amount that the card issuer owes you appears as a credit balance on your billing statement. Every time you make a payment, credits are applied to your account. When you return something you purchased using your credit card, a credit might be added. A credit balance is an account's final total, which can be either positive or negative depending on the circumstances. The following situations include a credit balance: a bank account's positive balance. The full balance owed on a credit card.

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how can project managers navigate organizational culture while working on projects? select all that apply.

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While working on projects, project managers can negotiate company culture by making observations, recognizing their effects, and raising questions.

Define Project Managers.

The project manager is responsible for the project's planning, acquisition, execution, and conclusion. The project manager is in charge of overseeing all aspect of the endeavour, including the project scope, the project team, and the resources assigned to it. Project managers are organized, goal-oriented professionals that employ imagination, collaboration, and enthusiasm to create programmes that are sure to be a success.

The organizational culture is the setting in which a project manager and team must function. All project components, including procedures, leadership, management styles, communication, risk tolerance, and project request management, are impacted by the cultural norms in your organisation.

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the dividend payment date is when: multiple select question. retained earnings is increased. retained earnings is decreased. dividends payable is decreased. cash is decreased. dividends payable is increased. cash is increased.

Answers

decreased , retained , divides payable increas

define the external environment as it applies to an organization of your choosing. what are the unique aspects of the external environment for this organization?

Answers

The external environment may be understood because the elements that lie outdoor the control of an company, which has the potential to steer the operations of the organization in addition to the picks it makes. These factors determine the opportunities and dangers to be had for the business enterprise as properly.

An external environment is a collection of things or situations which can be outside the agency but have an effect on it in a few quantity. In business, this time period commonly applies to factors associated with out of manipulate dimensions together with society, financial system, regulations and political gadget.

The situations and occasions out of doors a corporation that impacts the way it operates: as the organization's external surroundings evolves, its desires need to evolve to mirror this changing environment.

The external environment is the factors out of doors a enterprise that could affect its operation by influencing its sports and alternatives and determine its possibilities and risks.

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how can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses?

Answers

A monopolistic competition firm will profit if its price is higher than the average total cost, and it will lose if its price is lower than the average total cost.

Monopolistic competition is a type of imperfect competition in which many producers compete against one another but sell products that differ from one another and thus are not perfect substitutes.

A monopoly is a form of imperfect competition in which a seller or producer dominates the market because there aren't any alternatives or rivals. Monopolistic competition is a type of imperfect competition in which multiple sellers compete for market share by differentiating their products.

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A request for proposal (RFP) allows more latitude to the supplier than astrengths. t/f

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A request for proposals (RFP) gives the supplier more freedom than a strengths. This statement is False

An entity, often a government agency or major corporation, submits a request for proposals (RFP) in order to receive a formal offer from possible suppliers for the required IT solution. The RFP procedure aids in obtaining proposals from suppliers and determining which one is most competent to finish the project. Secure offers from several providers with an effective RFP. You may compare talents and costs with these bids to pick the best partner for your project. Buyers issue RFPs, which are then made public and sent to vendors for a response. In response to RFPs, vendors (or suppliers) produce proposals.

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in some cases when the labor market is inefficient, a minimum wage appears to cause a small amount of . in others, it seems to change who is .

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In some cases when the labor market is inefficient, a minimum wage appears to cause a small amount of unemployment it seems to change who is employed.

A wage is money paid to an employee by their employer for labor completed over a certain amount of time. Wage payments include remunerative payments like rewards and tip payouts as well as compensation payments like the minimum wage, prevailing wage, and annual bonuses. Wages are a component of the costs associated with operating a business. Regardless of the company's prosperity, it is a duty to the employee.

Payment by wage contrasts with salary, where the employer pays a set sum at regular intervals (such as a week or month) regardless of the number of hours worked, commission, where pay is contingent on individual performance, and compensation based on the performance of the company as a whole.

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with a binder, an applicant for insurance obtains temporary coverage before the insurance company accepts or rejects the application. true false

Answers

The statement with a binder, an applicant for insurance obtains temporary coverage before the insurance company accepts or rejects the application is : A. True.

What is insurance?

Insurance can be defined as a coverage that help to cover those that enroll under the plan in case of unforeseen or unexpected event such as accident, fire among others.

The statement is true based on the fact that with a binder a person who applied  for insurance  can tend to collect temporary coverage  before  the insurance company decide on whether they are  accepting  or rejecting the person application.

Therefore the correct option is A.

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Which of the following conditions normally would not indicate that standard costs should be revised?a.The engineering department has revised product specifications in responding to customer suggestions.b.The average price of raw materials increased from $4.68 per pound to $4.82 per pound.c.The company has signed a new union contract that increases the factory wages on average by $3.50 an hour.d.Actual costs differed from standard costs for the preceding week.

Answers

Conditions that would typically not suggest that cost information should be updated included actual expenses differing from standard costs again for previous week.

Describe what you mean by "standard cost."

The planned cost of a typical manufacturing process is the benchmark against which real costs are measured. Of course, the first standard costs will need to be estimated if a new good, service, or method is to be used. A standard cost is also referred to as the cost that "should be," a preset cost, a projected future expense, an expected cost, a budgeted unit cost, or a forecast cost.

What are some instances of standard costs?

Examples include payments due for rent, utilities, insurance, office staff salary, and supplies, among others. $15 per hour read more. Moreover, the usual fixed price is $100,000. Therefore, 10 hours are needed to produce one unit in total. Find the company's average cost.

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Suppose the economy is operating at full employment. If the aggregate supply curve is upward sloping, a reduction in aggregate demand would (Note that this question is asking about P and U) cause both unemployment and inflation. cause unemployment but lower the price level. reduce unemployment but raise the price level. reduce unemployment and lower the price level.

Answers

If the aggregate supply curve is upward sloping, a reduction in aggregate demand would b) cause unemployment but lower the price level.

Real GDP, also known as aggregate supply, is the entire amount of output that enterprises will generate and sell. The total supply curve displays the amount of output—real GDP—that businesses will generate and market at each price point.

As the components of aggregate demand—consumption spending, investment expenditure, government spending, and spending on exports minus imports—increase, the aggregate demand curve, or AD curve, moves to the right. With the decline of these components, the AD curve will turn back to the left.

If equilibrium is reached within the flat AS range, then the economy will be experiencing unemployment but a constant level of price. The economy will be facing growing price levels or inflationary pressures and will be close to or at potential GDP if equilibrium happens in the steep range of AS, but it will also have a low unemployment rate.

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