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1 year ago

the fact that output gaps will not last indefinitely, but will be closed by rising or falling prices is the economy's:

1 answer:

3 0

The economy's self-correcting property is the fact that output gaps won't last indefinitely, but will be closed by rising or falling prices.

The output gap is the difference, expressed as a percentage of gross domestic product, between an economy's actual output and its highest potential output. An output gap can be either favorable or negative for a nation.

A negative output gap indicates that the economy's actual output is below its maximum capacity, whereas a positive output gap indicates that the economy is beating expectations because its actual output is higher than its acknowledged maximum output. The output gap helps paint a picture of how the economy is doing because the gross domestic product is used in its computation.

To learn more about output gaps, visit the link below:

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Martinez Furniture Company started construction of a combination office and warehouse building for its own use at an estimated c

baherus [9]

Answer:

$530,672

Explanation:

Base on the scenario been described in the question, we can use the following method to compute the avoidable interest on this project

Use the attached file below to find the solution to given problem .

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4 years ago

A company has beginning inventory for the year of $10,500. During the year, the company purchases inventory for $160,000 and end

djverab [1.8K]

Answer:

The correct answer is $147,500.

Explanation:

According to the scenario, the given data are as follows:

Beginning inventory = $10,500

Purchase inventory = $160,000

Ending inventory = $23,000

So, we can calculate the cost of goods sold by using following method:

Cost of goods sold = Beginning inventory + Purchase inventory - Ending Inventory

By putting the value, we get,

Cost of goods sold = $10,500 + $160,000 - $23,000

= $147,500

4 0

3 years ago

On January 1, 2021, Red Flash Photography had the following balances: Cash, $18,000; Supplies, $8,600; Land, $66,000; Deferred R

crimeas [40]

29 25 26 or even 55 maybe 27 28

5 0

3 years ago

A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation t

Kazeer [188]

Answer:

Question Aa. Alternative 1–$1,253,600

Alternative 2 –$1,230,300

Differential effect $ 23,300

b.The company should replace the old machine.

c Sunk cost $250,400

Question Ba. Alternative 1–$488,000

Alternative 2 –$466,000

Differential effect $ 22,000

b.The company should replace the old machine.

c Sunk cost $250,000

Explanation:

Question Aa. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $64,500 $64,500

Costs:

Purchase price 0 –$483,600 –$483,600

Variable production costs (8 years)–$1,253,600 –$811,200 $442,400

($156,700*8=$1,253,600)

($101,400*8=$811,200)

Income (Loss) –$1,253,600 –$1,230,300 $ 23,300

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formula

Sunk cost=$601,300-$350,900

Sunk cost=$250,400

Question Ba. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $231,000 $231,000

Costs:

Purchase price 0 –$545,000 –$545,000

Variable production costs (8 years)–$488,000 –$152,000 $336,000

($61,000*8=$488,000)

($19,000*8=$152,000)

Income (Loss) –$488,000 –$466,000 $ 22,000

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formua

Sunk cost=$600,000-$350,000

Sunk cost=$250,000

6 0

2 years ago

Describe the effect of technology as it relates to structural unemployment and technological unemployment

nignag [31]

Structural unemployment is aggravated and reduced by technology depending on the sector and advancements coming with it.

Explanation:

Technology has been responsible for the increase and decrease in structure unemployment which in simple terms means technology has given and taken people's jobs.

This is because technology changes an industry fundamentally. The people who are replaced by self serve robots loose their jobs but many gain the jobs of handling the new installed equipment like this in companies.

This leads to the point of technological unemployment which means that some people remain unemployed because they do not have certain technical knowledge which is unfortunate for many from lower classes.

7 0

3 years ago