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2 years ago

A movement along the phillips curve shows that the unemployment rate and inflation rate are.

Business

1 answer:

Katarina [22]2 years ago

4 0

The Phillips curve argues that unemployment and inflation are inversely related

<h3>What is Phillips curve?</h3>

The Phillips curve is an economic model named after William Phillips, who hypothesised a link between lower unemployment and higher rates of wage growth in an economy.

The Phillips curve is a graph that depicts the economic link between the rate of unemployment (or the rate of change in unemployment) and the rate of change in money earnings. It is named after economist A. William Phillips and suggests that when unemployment is low, wages tend to rise quicker.

According to the Phillips curve, inflation and unemployment are inversely related. Lower unemployment is associated with higher inflation, and vice versa. The Phillips curve was a notion used to drive macroeconomic policy in the twentieth century, but it was put into doubt by the 1970's stagflation.

To know more about Phillips curve follow the link:

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During the month of June, Rowling Boutique had cash sales of$233,200 and credit sales of $153,700, both of which include the 6%s

Kitty [74]

Answer:

Cash sales = $233,200 × (100 ÷ 106)

= $220,000

Credit sales = $153,700 × (100 ÷ 106)

= $145,000

Sales tax revenue = ($220,000 + $145,000) × 6%

= $21,900

Therefore, the Journal is as follows:

Sales tax revenue A/c Dr. $21,900

To sales tax payable $21,900

(To record the sales tax payable)

5 0

3 years ago

You sell short 300 shares of Microsoft which are currently selling at $30 per share. You post the 50% margin required on the sho

Lapatulllka [165]

Answer:

The rate of return will be of 20%

Explanation:

These are the follwong steps to calculate the rate of return:

First you need to calculate the inflow of funds from short selling of Microsoft shares

The number of shares by the information reunited is 300

The selling price of each share is $ 30 per share.

Total sale proceeds is 300 shares×$ 30 per share =$9000

Secondly you need to calculate the margin requirement

Margin requirement on short sale 50 %

Total sale proceeds on short sale×50%=$ 4500

Next year we will again buy each share at $ 27

Total outflow of funds will be $ 27*300 shares = $ 8100

With the information calculated above, we are ready then to calculate the net equity after one year

Net equity will be= (9000+4500-8100)= $5400

Finally, we are ready to calculate the Rate of return

If the net equity will be of $5400, the margin amount deposited is $ 4500, and net gain is $900, rate of return is as follows:

Rate of return= (900/4500)×100= 20%

7 0

4 years ago

ANSWER PLS

Nataliya [291]

Answer:

see below

Explanation:

Equity financing involves selling shares to investors. The entrepreneurs surrender part ownership to third parties. It means profits have to be shared, and there have to consultations in every major decision.

Debt financing involves borrowing from lenders. It has a big advantage in that the entrepreneur maintains full control of the business. They do not have to share profits with other people or risk being kicked out of the business. However, debts have to be paid. The monthly repayment for several years can have hamper progress. It reduces profits, making a business seem less valuable.

A business should balance between equity and debt financing. As much as possible, equity financing should have a bigger proposition of capital to be profitable and increase in worth.

6 0

3 years ago

Louis owns a stock that has an average geometric return of10.50 percent and an average arithmetic return of 11.00 percent over t

RideAnS [48]

Answer:

Average annual rate of return should Louis expect to earn over the next four years is 10.7%

Explanation:

The formula we are going o use is:

$Expected\ Return=\{(\frac{R-1}{N-1})*i_{g}\}+\{(\frac{N-R}{N-1})*i_{a}\}$

Where:

R is the number of years over which Louis expect to earn.

N is the number of years of average arithmetic return.

i_{g} is the average geometric return=10.50%=0.105.

i_{a} is the average arithmetic return =11%=0.11.

Solution:

$Expected\ Return=\{(\frac{R-1}{N-1})*i_{g}\}+\{(\frac{N-R}{N-1})*i_{a}\}\\Expected\ Return=\{(\frac{4-1}{6-1})*0.105\}+\{(\frac{6-4}{6-1})*0.11\}\\Expected\ Return=0.107$

Average annual rate of return should Louis expect to earn over the next four years is 10.7%

4 0

3 years ago

What is true about credit unions?

Basile [38]

I think the answer is d since the first 2 options are true

5 0

3 years ago