Answer:
A
Explanation:
Because as per time the value of money the future cash holds are discounted at discount rate yo find the present Worth, thus the higher value of early present cash flows creates higher present value compared to lower value of early cash flows
Answer:
Real GDP growth increases only in the short run, and the inflation rate increases in both the short run and the long run.
Explanation:
An increase in the growth rate of money supply will result in an increase in inflation in both the short run and the long run.
Long run growth of the real GDP growth depends on the effective use of resources and technology, not the money supply.
A small increase in the money supply is always needed to support economic growth, that is why one of the few ideas that most economists agree upon is that the inflation rate should be between 1.5 - 2% per year.
Answer:
Australia - <em>Shift Australia's production function upward, create a movement up along the production function as the full-employment quantity of labor increases, and increase potential GDP</em>
United States - <em>Will not change potential GDP as production happens in Australia</em>
Explanation:
Australia's production potential will rise which will be depicted by a shift upwards in the Production Possibilities Frontier (PPF) thereby leading to an increase in the full employment quality of labor and potential GDP for Australia.
As the production is happening in Australia, it will not affect potential GDP in the US.
Answer:
<u>1800 units </u>
Explanation:
Equivalent units refer to the number of units which would've been completed if all the efforts were directed at those units which were started during a month, which are of course less than the total units of work in process.
In the given case, equivalent units shall be computed as follows,
Equivalent number of units using weighted average method = Finished goods + Equivalent units in ending work in process
Equivalent number of units = 1200 + 800 × 0.75
Equivalent number of units = 1200 + 600 = 1800 units
