All categories

1 year ago

All else being equal, a decrease in ________ would shift the long-run aggregate supply curve (lras) to the left.

1 answer:

8 0

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

alterations in the overall supply

The aggregate supply/demand model illustrates the macroeconomic interactions between total supply and total demand as well as the factors that influence either total supply or total demand for the economy.

The aggregate supply curve moves to the right when productivity increases or the cost of necessary inputs lowers, allowing for a combination of lower inflation, increased production, and less unemployment.

The aggregate supply curve shifts to the left as the price of necessary inputs rises, potentially resulting in lower output, higher unemployment, and higher inflation.

to know more about aggregate supply curve

brainly.com/question/14748223

#SPJ4

You might be interested in

Kaelea, Inc., has no debt outstanding and a total market value of $81,000. Earnings before interest and taxes, EBIT, are project

son4ous [18]

Answer:

a. We have:

EPS under normal = $1.09 per share

EPS under expansion = $1.34 per share

EPS under recession = $0.74 per share

b. We have:

Percentage changes in EPS when the economy expands = 23%

Percentage changes in EPS when the economy enters recession = –32%

c. We have:

EPS under normal after recapitalization = $1.24

EPS under expansion after recapitalization = $1.59 per share

EPS under recession after recapitalization = $0.75 per share

d. We have:

Percentage changes in EPS after recapitalization when the economy expands = 28.23%

Percentage changes in EPS when the economy enters recession = –39.52%

Explanation:

a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.

Shares outstanding = 5,400

Net income under normal = EBIT under normal - (EBIT under normal * Tax rate) = $9,800 - ($9,800 * 40%) = $5,880

EPS under normal = Net income under normal / Shares outstanding = $5,880 / 5,400 = $1.09 per share

Net income under expansion = (EBIT under normal * (100% + Percentage increase in EBIT)) - ((EBIT under normal * (100% + Percentage increase in EBIT)) * Tax rate) = ($9,800 * (100% + 23%)) – (($9,800 * (100% + 23%))* 40%) = $7,232.40

EPS under expansion = Net income under expansion / Shares outstanding = $7,232.40 / 5,400 = $1.34 per share

Net income under recession = (EBIT under normal * (100% - Percentage decrease in EBIT)) - ((EBIT under normal * (100% - Percentage decrease in EBIT)) * Tax rate) = ($9,800 * (100% - 32%)) – (($9,800 * (100% - 32%))* 40%) = $3,998.40

EPS under recession = Net income under recession / Shares outstanding = $3,998.40 / 5,400 = $0.74 per share

b. Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage changes in EPS when the economy expands = ((EPS under expansion - EPS under normal) / EPS under normal) * 100 = (($1.34 - $1.09) / $1.09) * 100 = 23%

Percentage changes in EPS when the economy enters recession = ((EPS under recession - EPS under normal) / EPS under normal) * 100 = (($0.74 - $1.09) / $1.09) * 100 = –32%

c. Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization.

Market price per share = Total market value / Shares outstanding before recapitalization = $81,000 / 5,400 = $15

Number of shares to repurchase = Debt amount / Market price per share = $23,100 / $15 = 1,540

Shares outstanding after recapitalization = Shares outstanding before recapitalization - Number of shares to repurchase = 5,400 – 1,540 = 3,860

Interest on debt = Debt amount * Interest rate = $23,100 * 8% = $1,848

Net income under normal after recapitalization = EBIT under normal – Interest on debt - ((EBIT under normal – Interest on debt) * Tax rate) = $9,800 - $1,848 - (($9,800 - $1,848) * 40%) = $4,771.20

EPS under normal after recapitalization = Net income under normal after recapitalization / Shares outstanding after recapitalization = $4,771.20 / 3,860 = $1.24

EBIT under expansion = EBIT under normal * (100% + Percentage increase in EBIT) = ($9,800 * (100% + 23%)) = $12,054

Net income under expansion after recapitalization = EBIT under expansion – Interest on debt – ((EBIT under expansion – Interest on debt) * Tax rate) = $12,054 - $1,848 - (($12,054 - $1,848) * 40%) = $6,123.60

EPS under expansion after recapitalization = Net income under expansion after recapitalization / Shares outstanding after recapitalization = $6,123.60 / 3,860 = $1.59 per share

EBIT under recession = EBIT under normal * (100% - Percentage decrease in EBIT) = ($9,800 * (100% - 32%)) = $6,664

Net income under recession after recapitalization = EBIT under recession – Interest on debt – ((EBIT under recession – Interest on debt) * Tax rate) = $6,664 - $1,848 - (($6,664 - $1,848) * 40%) = $2,889.60

EPS under recession after recapitalization = Net income under recession after recapitalization / Shares outstanding after recapitalization = $2,889.60 / 3,860 = $0.75 per share

d. Calculate the percentage changes in EPS when the economy expands or enters a recession.

Percentage changes in EPS after recapitalization when the economy expands = ((EPS under expansion after recapitalization - EPS under normal after recapitalization) / EPS under normal after recapitalization) * 100 = (($1.59 - $1.24) / $1.24) * 100 = 28.2%

Percentage changes in EPS when the economy enters recession = ((EPS under recession - EPS under normal) / EPS under expansion) * 100 = (($0.75 - $1.24) / $1.24) * 100 = –39.52%

6 0

3 years ago

Which opening is most appropriate for this adjustment letter? a.We will grant your request and you can have a new gym bag althou

leva [86]

Answer:

The correct answer is letter "C": You rightly expect only the best quality from the Yuma brand, and this is why we will gladly provide you with a brand-new gym bag that features our trademarked.

Explanation:

Adjustment letters are the replies merchants or sevice providers send to their customers after claims. The document includes the investigation made of the consumers' particular case and what the course of action will be to solve the problem acccording to the terms and conditions of the good purchased or the service rendered.

If adjustment letters have positive outcomes for the consumer should provide the news at the openning. If negative, it is better to explain the reasons of the denial first and state the result at the end. Then, an example of a good opening for an adjustment letter would be:

"You rightly expect only the best quality from the Yuma brand, and this is why we will gladly provide you with a brand-new gym bag that features our trademarked".

3 0

3 years ago

dmitriy555 [2]

Answer:

Please see answer below

Explanation:

This is an incomplete question. However, other parts of the question have been added as extracted .

1. Determine the direct material price and quantity variances

Direct material price variance

= (Actual price - Standard price) × Purchase quantity

= ($0.85 - $1) × 103,000

= $15,450 Favorable

Direct material quantity variance

= (Actual quantity - Standard quantity) × Standard price

= (103,000 - 101,000) × $1

= $2,000 Unfavorable

2. Think of a plausible explanation for the variances found in requirement 1.

°For direct material price variance, the possible reasons for the variance are shortage of raw materials, discount application etc. However, variance was favorable because the direct material was purchased for lesser amount compared to the standard price.

°For direct material quantity variance, possible causes of variance are low quality of raw materials, incorrect specification of raw materials, damage during production processes. However, the variance was unfavorable because

the actual quantity used is more than the standard quantity that ought to have been used.

3. Determine the direct labor rate and efficiency variance

Direct labour rate variance

= (Actual rate - Standard rate) × Actual hours worked

= ($12.35 - $12.05) × 1,700

= $510 Unfavorable

Direct labor efficiency variance

= (Actual hours worked - Standard hours worked) × Standard rate

= (1,700 - 1,400) × $12.05

= $3,615 Unfavorable

4. Could the explanation for the labor variances be tied to material variances.

No. The total labor variance could be as a result of money paid to laborers which be could be lower or higher than the standard rate and using either less or more direct labor hours than expected.

5 0

3 years ago

An online savings account _____. offers lower interest rates because it costs more money to maintain the online site offers high

sveta [45]

Your answer would be they offer Higher interest rates.

5 0

3 years ago

Read 2 more answers

The campus bookstore sells 4,000 sets of graduation regalia each year. Placing an order from their supplier costs $25 regardle

poizon [28]

Answer:

$4050