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2 years ago

When a negative real shock hits the economy, in the absence of any monetary intervention?

1 answer:

6 0

When a negative real shock hits the economy, without monetary intervention, both inflation and real growth will decline.

Inflation can be defined as an increase in prices, which can be translated as a decrease in purchasing power over time. The rate of decline in people's purchasing power can be reflected in the increase in the average price of a selected basket of goods and services over a period of time. An increase in price, which is often expressed as a percentage, means that one unit of currency is effectively buying less than it did in the previous period. Inflation can be contrasted with deflation, which occurs when prices fall and people's purchasing power increases.

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What is productivity?

AveGali [126]

Explanation:

Productivity is the efficiency of a machine or a man to convert any raw material into finished products. The conversion of raw materials into useful outputs is termed as productivity.

Basically, how much output a man or a machine can give in a specific time period which is a useful output is productivity. Many industries or companies pays their employees on the basis of productivity. Efficient uses of labour, capital, raw material to bring effective and efficient outputs.

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3 years ago

Which of the following statements is correct? Multiple Choice Interest rates and bond prices vary directly. Interest rates and b

nevsk [136]

Answer:

Interest rates and bond prices vary inversely

Explanation:

The relationship between interest rate and bond prices can be seen in the bond pricing formula. Given a series of coupon payments (C) paid over the lifetime (ranging from "1" through "i" to "n") of a bond, and given that the bond will repay the principal investment (F) at maturity, the price of the bond is

$P = ∑\frac{C}{(1+r)^{i}} + \frac{F}{(1+r^{n})}$

where "r" is the interest rate.

As seen in the formula, the price of the bond (P) is inversely related to the interest rate (r).

Option A is incorrect because interest rates and bond prices vary indirectly, not directly. Option C is incorrect because interest rates and bond prices are related. Option D is incorrect because vary inversely irrespective of inflation and recession.

8 0

3 years ago

Duane has a small woodworking business and saves the money for college. He stores his tools in his apartment. Duane would like t

kkurt [141]

Answer:

a. he will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.

Explanation:

The statement that would best complete the chart, is that he will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.

This is the best statement because one of the major principles of Cost Benefit Analysis is that there has to be a Defining of a particular study area which implies that – The impact of a project should be defined for a particular study area

The option clearly states that the project of purchasing the truck will impact on the college studies of Duane

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3 years ago

Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service lif

Zepler [3.9K]

Answer:

Annual depreciation= $28,940

Explanation:

Giving the following information:

Kansas Enterprises purchased equipment for $78,500 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $6,150 at the end of five years.

Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]

Annual depreciation= 2* [(78,500 - 6,150)/5]= $28,940

5 0

4 years ago

Gavin invested $40,000 in the Jason and Kelly Partnership for ownership equity of $40,000. Prior to the investment, land was rev

stich3 [128]

Answer:

Dr Land $189,000

Cr Jason, Capital $63,000

Cr Kelly, Capital $126,000

Dr Cash $40,000

Cr Gavin, Capital $40,000

Explanation:

Dr Land ($363,000-$174,000) $189,000

Jason, Capital (1/3×189,000) $63,000

Kelly, Capital(1/2×189,000) $126,000

Dr Cash $40,000

Cr Gavin, Capital $40,000

6 0

3 years ago