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2 years ago

In the short-run which form of inflation is caused by a decrease in the supply curve or an increase in wages?

Business

1 answer:

fomenos2 years ago

7 0

Cost push inflation occurs when there is a decrease in the supply curve or an increase in wages.

Wage-Push Inflation, Profit-Push Inflation, and Material-Cost-Push Inflation are three of the main components of the cost-push inflation theory.

These theories often consist of three components:

The cost increase is independent of the level of demand in the relevant market.
That an essential cost element, like as wages, profits (mark-up), or material costs, is how the push forces work. In light of this, cost-push inflation can take the forms of wage-push inflation, profit-push inflation, material-cost-push inflation, or a mixed variation of inflation in which multiple push causes reinforce one another; and
Instead of being absorbed by producers, the cost rise is transferred to consumers in the form of increased prices.

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It is possible to observe a positive nominal interest rate together with a negative real interest rate. a. True b. False

grigory [225]

It's possible to have a positive nominal interest rate with a negative real interest rate. Therefore, it's true.

<h3>What is real interest rate?</h3>

It should be noted that the real interest rate is the interest rate that has been adjusted for inflation.

The nominal interest rate hasn't been adjusted for inflation. It's possible to observe a positive nominal interest rate together with a negative real interest rate.

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5 0

3 years ago

Indicate whether each of the following descriptions represents saving or investment, as defined by a macroeconomist.

Cloud [144]

Answer: See explanation

Explanation:

a. This occurs when a person's income exceeds his consumption. - This is savings.

b. This occurs when a person or firm purchases new capital. - This is investment.

1. You use your $200 paycheck to buy stock in AT&T. - This is savings since the money isn't used to make a capital purchase for ones business.

2. You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. - This is investment as the car will be used for ones business. The consumption is made to help the business.

3. Your family takes out a mortgage and buys a new house. - This is investment as a new capital is bought.

4. Your roommate earns $100 and deposits it in his account at a bank. - This is savings as no consumption is involved.

3 0

3 years ago

Question 1 OTU

Alchen [17]

Answer:

B. Company A has a comparative advantage in the production of

rakes

Explanation:

Comparative advantage describes the ability of an enterprise to produce a particular product, goods, or services at a lower price in comparison to rivals. It means that the enterprise uses fewer inputs such as labor, capital, or land to produce. A company with a comparative advantage will manufacture more goods with the same quantity of inputs.

Company A produces rakes at $15 while company B produces at $17. Company A, therefore, has a comparative advantage over company B in the production of rakes. It means company A use fewer resources rakes than company B. Company A can sell rakes at a lower price than company B.

3 0

3 years ago

Read 2 more answers

List examples of words that can describe a store's image.

GarryVolchara [31]

Some words which can be used to describe a store's image are:

Public perception
Personal brand

<h3>What is Perception?</h3>

This refers to the way people view a business with regards to its ease of operations (or lack of it), and ethical outlook, etc.

Hence, we can see that a store that has a bad image, perhaps from selling substandard goods would have a bad/negative public perception and this would affect the business because they would lose customers.

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4 0

3 years ago

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual i

fgiga [73]

Answer and Explanation:

The Journal entry is shown below:-

1. Inventory Dr, $1,800

To accounts payable $1,800

(Being purchase of calculators on account is recorded)

2. Inventory Dr, $50

To cash $50

(Being inventory is recorded)

3. Accounts payable Dr, $51

To inventory $51

(Being return of calculators is recorded)

4. Accounts Receivable $670

To Sales revenue $670

(Being sales revenue is recorded)

5. Cost of Goods Sold Dr, $460

To Inventory $$460

(Being cost of goods sold is recorded)

6. Sales returns Dr, $40

To Accounts receivable $40

(Being goods returned by customer is recorded)

7. Inventory Dr, $28

To Cost of Goods Sold $28

(Being cost of goods sold returned is recorded)

8. Cost of Goods Sold Dr, $780

To Sales revenue $780

(Being cost of goods sold is recorded)

9. Cost of Goods Sold Dr, $560

To inventory $560

(Being cost of goods sold is recorded)

8 0

3 years ago