Answer:
A. Stay the same
Explanation:
We need to compare the rate of price change and the rate of inflation.
Rate of price change = <u> $12 - $10</u> x 100
$10
=2/10 x 100
=0.2 x 100
=20%
inflation rate= <u>CPI year 2- CPI year</u> 1 x 100 %
CPI year 1
=180 -150 x 100
150
=30/150 x 100
=0.2 x 100
=20%
The price change are the inflation rate are the same.The real wages will stay the same
Answer:
A.True
Explanation:
A financial risk is the risk that could arise through borrowing. If an entity borrows money, it will have to pay the money back at some time, and will also have to pay interest. The risk is that if an entity borrows very large amounts of money, it might fail to generate enough cash from its business operations to pay the interest or repay the debt principal.
So based on the above discussion, the answer is A.True
Answer:
Consumption is a key component in the calculation of GDP and refers to how much money out of disposable income is spent by households on goods (both durable and non-durable) and services.
Disposable income is how much money households have after taxes. Their consumption and spending come from here.
Whatever is not spent is saved. Savings are therefore calculated as;
Savings = Disposable income - Consumption
Savings for the above are therefore,
$20,000 - $22,000 = -$2,000
21,000 - 22,500 = -$1,500
22,000 - 23,000 = -$1,000
23,000 - 23,500 = -$500
24,000 - 24,000 = $0
25,000 - 24,500 = $500
26,000 - 25,000 = $1,000
27,000 - 25,500 = $1,500
28,000 - 26,000 = $2,000
Aggregate supply (as) denotes, while holding the price of inputs fixed, the <u>price level of output</u> that firms choose to produce and <u>GDP.</u>
<h3>What is aggregate supply?</h3>
Aggregate supply is when goods and service produced or manufacture are made available to buyers or can be defined as the amount of goods produce and supply to the market at particular period of time.
Aggregate supply can tend to increase in a situation were the price of goods and services decrease or when the price of product fall.
Therefore, Aggregate supply donate, while holding the price of inputs fixed, the price level of output that firms choose to produce and Gross domestic product (GDP).
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