1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitriy789 [7]
2 years ago
7

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

Business
1 answer:
Reptile [31]2 years ago
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.

You can learn more about inflation here brainly.com/question/28190771

#SPJ4

You might be interested in
When preparing the statement of cash flows using the indirect​ method, which statement is​ INCORRECT? A. Losses on the sale of l
ExtremeBDS [4]

Answer:

The correct answer is Option A.

Explanation:

A. Losses on the sale of longminusterm assets are subtracted from net income - This is incorrect because on losses on sale of an asset are usually added to the net income to avoid double-counting of income. Under the investing section of the cash flows, the proceed received on disposal is recorded there as inflow, if the losses realized on the disposal are subtracted, there would be a double-counting because the losses had already reduced the net income before.

B. Increases in current liabilities are added to net income - This is an inflow of cash, so it is usually added back.

C. Depreciation expense is added to net income - The explanation under Option A above applies but only that depreciation is a non-cash item, which already reduced the net income and it has to be added back to reinstate the net income.

D. Gains on the sale of longminusterm assets are subtracted from net income - Explanation under Option A applies.

3 0
3 years ago
An invention that raises the future marginal product of capital in a closed economy) would cause an increase in desired investme
Lostsunrise [7]

Answer:

A) right; increase

Explanation:

In the case of the closed economy when the marginal product of capital increased so it also increased the investment due to which the shifting of the investment curve is rightward and this will result in increase in the real interest rate

So as per the given situation, the option a is correct

8 0
2 years ago
Bob is willing to pay $65 for a new pair of shoes. bill is willing to pay $50 for the same shoes. the shoes have a price of $45.
iVinArrow [24]
The surplus to be determined in this problem is equal to the difference between the money willing to be paid and the value of the purchase. hence for Bob, surplus value is equal to 65- 45 or $20 while that of Bill is equal to 50-45 or $5. The total surplus for both boys is equal to $20 + $5 or $25.
3 0
3 years ago
The capital asset pricing model is used to calculate the effect of increase in prices of capital assets due to inflation.
Mashutka [201]
False is correct answer.

Hope it helped you.

-Charlie
5 0
2 years ago
Hello Im Angelina If you want Brianliest Please anwser my questions I may need hep understandings any subject I dont want anwser
SashulF [63]

Answer:

ok i got u

Explanation:

8 0
3 years ago
Other questions:
  • Talbot purchased a laptop for $1,500 and a television for $1,300. The laptop is used solely for business and the television sole
    13·1 answer
  • You are the hr consultant to a small business with about 40 employees. now the firm offers only 5 days of vacation, 5 paid holid
    8·1 answer
  • An electronics firm produces smart phones for sale to the worldwide market.
    5·1 answer
  • Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from
    14·1 answer
  • Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that
    8·1 answer
  • The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,00
    7·1 answer
  • Hoffman Corporation issued $80 million of 7%, 10-year bonds at 104. Each of the 80,000 bonds was issued with 11 detachable stock
    10·1 answer
  • A 14-week construction activity requires a crane that rents for $1,000 per week and a crew of general laborers that costs $5,000
    6·1 answer
  • he post-closing trial balance differs from the adjusted trial balance in that it does not a.include income statement accounts b.
    6·1 answer
  • Veronica works in the purchasing department for Medical Center Hospital. She buys gloves, masks, and protective gear from Johnso
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!