In January 2014, Tim's Gyms, Inc

question 82

Multiple Choice

In January 2014, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the machines fell by 10 percent. During 2014, Tim spent $200,000 on new machines. During 2014, Tim's net investment was

• A)$1 million.
• B)$300,000.
• C)$200,000.
• D)$100,000.
• E)$1.1 million.

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Definitions:

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to offer for sale over a given period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and time.

Classical School

A branch of economic thought that emphasizes the importance of market forces in determining economic outcomes and the self-regulating nature of the economy.

Great Depression

A severe and prolonged global economic downturn that occurred in the 1930s, marked by massive unemployment and deflation.