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1 year ago

High inflation imposes various costs on society. What can policymakers do to keep inflation at a low level?.

1 answer:

5 0

High inflation imposes various costs on society. Maintain a slow growth in the number of money policymakers do to keep inflation at a low level.

There are only two real costs of inflation in this economy. Inefficient management of transactions due to low currency balances and the need to change advertised prices more frequently (so-called menu costs).

Today, contractionary monetary policy is the more popular way to control inflation. The goal of contractionary policymakers is to reduce the money supply within the economy by raising interest rates. 5 This slows economic growth as borrowing costs rise and consumers and businesses spend less.

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What will be the resulting change in equilibrium of the chocolate bar market

myrzilka [38]

Equilibrium price will increase and quantity will decrease will be the resulting change in the equilibrium of the chocolate bar market.

The equilibrium charge is the rate at which the amount demanded equals the amount supplied. It's far decided through the intersection of the demand and deliver curves. A surplus exists if the amount of an excellent or carrier provided exceeds the amount demanded on the contemporary charge; it causes downward strain on the charge.

Equilibrium is the nation wherein market supply calls for balance every other, and as a result, costs come to be strong. Typically, an over-supply of goods or services causes expenses to move down, which results in a higher call for—while an underneath-deliver or shortage causes fees to head up resulting in less demand.

Upward shifts inside the supply and demand curves have an effect on the equilibrium rate and amount. If the deliver curve shifts upward, meaning deliver decreases however demand holds constant, the equilibrium rate will increase but the quantity falls.

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3 0

1 year ago

Whats better, be an hour early to work, or 15 minutes late?

statuscvo [17]

An hour early to work. if you are 15 minutes late your fired. i go by if you early your on time. if your on time your late. if you late your fired.

3 0

2 years ago

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputa

11Alexandr11 [23.1K]

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in a sustainable competitive advantage.

<h3><u>Explanation:</u></h3>

When a firm offers its customers with any products that has higher quality and benefits or lower price that its competitors then it refer to the competitive advantage. It is the advantage that the firm attains when compared with their competitors.

There are many different kinds of competitive advantage that can be used by a firm such as cost, product differentiation, niche strategies, etc. It is the thing that is absent in the competitors. In the given example, Nordstrom has well known reputation for the service that it gives for its customers and hence it is the likely result of sustainable competitive advantage.

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3 years ago

A dog grooming business is walking through the target market defining process and is now asking questions about its potential cu

siniylev [52]

Answer:

Explanation:

4 0

3 years ago

On January 3, 2014, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty

likoan [24]

Answer:

Accumulated depreciation for Years 1 - 5 under:

the Straight-line method is $90,000.
the Units-of-production method is $90,000.
the Double-declining-balance method is $86,170.

Explanation:

The total cost of the asset is $90,000 + $3,000 + $1,500 + $4,500 = $99,000, since all the other costs were directly attributable cost and were necessary to bring the asset to usable form.

The painting is capitalized because it is the first time Trust Delivery would be using the asset, otherwise it would have been expended
Overhauling cost can be regarded as a separate asset, if we were provided with different useful lives - componentization.

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($99,000 - $9,000) / 5 years = $18,000 yearly depreciation expense.

Accumulated depreciation for Years 1 to 5 is $18,000 x 5 years $90,000.

The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($99,000 - $9,000) / 100,000 miles x 22,500 miles = $20,250/year

Accumulated depreciation for the first four years is $20,250 x 4 years = $81,000.

At Year 5, depreciation = $90,000 / 100,000 miles x 10,000 miles = $9,000

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Years 1 - 4.

Accumulated depreciation expense for Years 1 to 5, under this method, is $90,000 (addition of first four years and the Year 5).

The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/5years = 20%, then 20% multiplied by 2 to give 40%

At Year 1, 40% X $99,000 = $39,600

At Year 2, 40% X $59,400 ($99,000 - $39,600) = $23,760

At Year 3, 40% X $35,640 ($59,400 - $23,760) = $14,256

At Year 4, 40% X $21,384 ($35,640 - $14,256) = $8,554 approximately (the depreciation expense would stop at this stage since the amount falls below the residual value).

Accumulated depreciation expense for Years 1 to 4, under this method, is $86,170 (addition of all the yearly depreciation).

7 0

3 years ago