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Law Incorporation [45]
1 year ago
12

if the equilibrium output is above the gdp potential then the gap between the output and potential gdp would be called a(n)

Business
1 answer:
Mekhanik [1.2K]1 year ago
6 0

According to the claim, the difference between output current and potential GDP is known as the inflationary gap.

<h3>What GDP means?</h3>

Gross domestic product, also known as GDP, is one of the most popular. It is frequently quoted in reports by authorities, financial institutions, and the financial industry as well as in newspapers, on news channels, and in publications. It is now frequently used as a benchmark for measuring the strength of both national and global industries.

<h3>What is GDP and how is it calculated?</h3>

GDP is calculated as private consumption plus domestic product plus government investment plus (exports – imports). The country's national statistical office often uses the international standard to compute GDP.

To know more about GDP visit:

brainly.com/question/15682765

#SPJ4

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XYZ Corp owns a 3-year $10 million par floating rate bond. The coupons on the bond are 12-month LIBOR. XYZ would like to hedge a
malfutka [58]

Answer:

 2.45%

Explanation:

The computation of the fixed rate is shown below:

Years to maturity   Zero coupon  bond price  YTM      Forward rate

1                                 0.99                     1.01%  

2                                      0.97                             1.53%       2.06%

3                                      0.93                            2.45%     4.30%

The fixed rate should be equivalent to the YTM of the 3 year bond i.e. 2.45% the same is to be considered

3 0
3 years ago
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn i
timama [110]

Answer:

b. $60

Explanation:

Produced surplus = Price producer is able to sell - Price producer would be willing to sell

Price the producer is able to sell = Producer surplus + Price producer would be willing to sell

= $100 + ($15 + $25 + $40)

= $180 for 3 lawn

Therefore, if Ronnie charges are customers the same price for lawn mowing, that price is

= $180 / 3

= $60

8 0
2 years ago
an investor has $50000 that she wishes to invest for her child's college expenses, which the child starts next year. The most su
dezoksy [38]

The investment option that the client should go with to pay the child's college expenses is a. treasury bills.

<h3 /><h3>Why should treasury bills be used?</h3>

Treasury bills have a short term lifespan of less than a year which means that they mature in a short period of time.

The investor can invest in treasury bills and be able to access them by the time the child starts in school the next year.

Options for the question are:

a. treasury bills

b. intermediate-term bonds maturing in 5 years

c. long-term bonds of blue chip companies maturing n 10-30 years

d. a mutual fund based on the S&P 500 index

Find out more on treasury bills at brainly.com/question/14604863

#SPJ1

3 0
1 year ago
Read 2 more answers
Which component of a service is the ability to perform the service dependably, accurately, and consistently?
Elena-2011 [213]
Good treatment for customer,well coming of the customer,to provide quality surviec
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6 0
3 years ago
On April 1, 2019, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What
emmainna [20.7K]

Answer:

The insurance expense on the annual income statement for the year ended December 31, 2019 will be D. $337.50

Explanation:

The company paid the $1,350 premium on a three-year insurance policy.

The insurance expense per year = $1,350/3 = $450

From April 1, 2019 to December 31, 2019, the company had bought the insurance for 9 months.

The insurance expense on the annual income statement for the year ended December 31, 2019 = $450/12x9 = $337.5

6 0
3 years ago
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