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yarga [219]
2 years ago
7

What is the effect of contractionary?

Business
1 answer:
hjlf2 years ago
5 0

This slows economic development and brings down inflation. If implemented too vigorously, contractionary policy may eventually cause an economic recession by increasing unemployment and decreasing borrowing and spending by consumers and firms.

Notably, the purpose of contractionary monetary policy is to lower rather than to halt the rate of demand for goods and services. Therefore, a contractionary policy that raises interest rates can be employed to reduce inflation and return the economy to the dual mandate's price stability goal. Contractionary fiscal policy aims to reduce growth to a level that is healthy for the economy. That equates to 2% to 3% annually. 1 An economy that expands by more than 3% has four unfavorable effects. Inflation is caused. The government's decision to cut spending could be a contractionary fiscal policy example. When the economy is in contraction, it means that it is experiencing a downturn as a whole. The business cycle often experiences a contraction after its peaks but before it enters a trough.

Learn more about contractionary here

brainly.com/question/3065217

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Suppose that the nominal value of GDP increased by approximately 2 percent during a given year, but real GDP decreased by 3 perc
Fed [463]

Answer:

b. Prices fell by at least by approximately  5%.

Explanation:

we know that nominal GDP(Gross Domestic Product) is when a basket of goods and services price is calculated per basket without adjusting to inflation but on Real GDP it is adjusted to inflation therefore we will see that if Real GDP decreases this will mean a negative GDP deflator that will be negative which will tell us that the prices in this economy for a basket of goods and services decreased during that year cause deflation was seen with a decrease in Real GDP.

3 0
4 years ago
Threadless receives immediate customer feedback on specific promotions through online orders. What type of control does this rep
kaheart [24]

Receiving immediate customer feedback on specific promotions through online orders can be gotten by Concurrent control.

<h3>What is concurrent control?</h3>

Concurrent control serves as a control strategy that is used by companies to get customer feedback after making a promotion about their brand.

Therefore, with this concurrent control , the company can Know what the potential customers feels about the product.

Learn more about concurrent control at;

brainly.com/question/2197311

5 0
2 years ago
You are the owner of a winter sporting goods store and recently purchased a shipment of 60 sets of snowboards and snowboard bind
alina1380 [7]

Answer:

Profits Comparison:

                Sold Separately       Bundled

Revenue          $32,500            $30,000

Costs                 29,000              29,000

Profits               $3,500               $1,000

The calculations show that it is far better to sell the snowboards and bindings separately at the profit-maximizing prices than bundling them and selling for one price.

This is because, if the single price is more than $500, the beginners might not buy the items and they will remain unsold.

Explanation:

a) Data and Calculations

Cost of purchase of 60 sets of snowboards and snowboard bindings = $29,000

Unit cost of a set of snowboard and binding = $483.33 ($29,000/60)

Snowboarders             Advanced    Intermediate    Beginners   Average

Number                           20                   20                   20

Snowboards                  $350              $250               $175            $258.33

Bindings                          250                 275                325            $283.33

Total                              $600              $525               $500           $541.66

Total revenue:                                                                                Total

when sold separately  $12,000         $10,500          $10,000       $32,500

Total revenue:

when bundled at a price (for example $500 for each) = $30,000 ($500 * 60)

                Sold Separately       Bundled

Revenue          $32,500            $30,000

Costs                 29,000              29,000

Profits                $3,500               $1,000

     

8 0
3 years ago
Cisco Systems uses a differentiation strategy. It offers its customers the latest in routers and switches. Cisco products may co
defon

Answer: The corrects answers are "organic", "B. Decentralized decision making allows for greater flexibility in meeting customer needs." and "D. Shorter chains of command and horizontal communication allow for increased innovation.".

Explanation: Cisco Systems will be more effective if it has <u>an organic </u>structure.

The reasons that explain this are that decentralized decision-making provides greater flexibility in meeting customer needs, and through short chains of command and horizontal communication, innovation is promoted.

3 0
4 years ago
Trade policies Group of answer choices alter the trade balance because they alter imports of the country that implemented them.
a_sh-v [17]

Answer:

do not alter the trade balance because they cannot alter the national saving or domestic investment of the country that implements them.

Explanation:

Trade policy explains rules, regulations, and standards that are relevant to trade relations between two countries. Trade policy is also called the Commercial policy.

Trade policies do not alter the trade balance because they cannot alter the national saving or domestic investment of the country that implements them.

7 0
3 years ago
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