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tia_tia [17]
1 year ago
14

the economy was in long-run equilibrium when aggregate demand increased. at this point in time, the expected inflation has start

ed to adjust to the new higher actual inflation rate. according to the (friedman) natural rate theory, this means the unemployment rate in the economy must currently be
Business
1 answer:
artcher [175]1 year ago
3 0

The eco-nomy was in long-run equilibrium when aggre-gate demand increased. At this point in time, the expec-ted inflation has start-ed to adjust to the new high-er actual inflation rate. Accor-ding to the (Friedman) natural rate the-ory, this means the unemploy-ment rate in the economy must curr-ently be <u><em>below the natu-ral rate</em></u>.

Milton Friedman defi-ned the natural rate of unemploy-ment as the level of unemployment that result-ed from real economic forces, the long-run level of whi-ch could not be altered by monet-ary policy. Accor-ding to the general equili-brium model of economics, natural unemploy-ment is equal to the level of unemploy-ment of a labor mark-et at perfect equilibrium.

To know more about Friedman click below:

brainly.com/question/6803976

#SPJ4

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Assuming the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure
Trava [24]

Answer:

The plot of the yields is attached.

Explanation:

i) 6%, 7%, 8%, 7%, 6%

Interest rate on 1 year maturity = 6%/1 = 6%

Interest rate on2 year maturity = (6%+7%)/2 = 6.5%

Interest rate on 3 year maturity = (6%+7%+8%)/3 = 7%

Interest rate on 4 year maturity = (6% + 7% + 8% + 7%)/4 = 7%

Interest rate on 5 year maturity = (6% + 7% + 8% + 7% + 6%)/7 = 6.8%

ii)6%, 5%, 4%, 5%, 6%

Interest rate on 1 year maturity = 6%/1 = 6%

Interest rate on 2 year maturity = (6% + 5%)/2 = 5.5%

Interest rate on 3 year maturity = (6% + 5% + 4%)/3 = 5%

Interest rate on 4 year maturity = (6% + 5% + 4% + 5%)/4 = 5%

Interest rate on 5 year maturity =   (6% + 5% + 4% + 5% + 6%)/5 = 5.2%

3 0
3 years ago
(Ignore income taxes in this problem.) Avanca Fitness Center is considering an investment in some additional weight training equ
LenaWriter [7]

Answer:

Explanation:

The payback period on this equipment is closest to value of PV factor of 12% for 10 years

Factor of the internal rate of return=\frac{(1-(1.12)^{-10})}{0.12} = 5.65

The payback period on this equipment is 5.65 years

8 0
3 years ago
If Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other posit
Readme [11.4K]

Answer: network structure

Explanation:

Network structure is a form of organizational structure that is considered to be less hierarchical and also more flexible than most other organizational structures. In a network structure, it is the managers who usually both the internal and external relationships.

Barcelona has a core staff of restaurant managers and head chefs and contracts with staffing agencies to fill all other positions, from accountants to dishwashers, then the company has a network structure.

5 0
4 years ago
John, Jay, and Jeff each have an ownership interest in Three Guys Burgers, Inc. Based on the following information, which of the
eimsori [14]

Answer and Explanation:

Material participation in the business is when involvement in the business activity exceeds 500 hours during the year. Furthermore, if the activity is a significant activity of participation and the number of aggregate hours worked in all such activities exceeds 500 hours per year, of that kind participation is also construed as material participation.

Therefore, the participation of John and Jeff would be considered as material.

4 0
4 years ago
On January 1, 2019, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,049. During the first 11 months of the ye
ipn [44]

Answer:

$24,396

Explanation:

The total of accounts written off for 11 months can be calculated by subtracting the November 30 balance from the total of beginning balance

Bad debt - Bad debt written off

= Allowance for bad debts + bad debts expense - Allowance for bad debts account as at November 30, 2019

= $13,049 + $21,058 - $9,711

= $24,396

4 0
3 years ago
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