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kipiarov [429]
1 year ago
5

Describe how changes in expected inflation impact an economy in the wake of a temporary negative supply shock

Business
1 answer:
Fed [463]1 year ago
8 0

Negative shocks reduce production and increase unemployment. Positive shocks increase production and reduce unemployment.

Unexpected change moving SRAS. A positive supply shock increases SRAS, whereas a negative supply shock decreases SRAS. A combination of slowing overall economic output (declining) and rising price levels (inflation). Stagnation occurs when SRAS decreases.

A negative supply shock leads to an increase in the natural rate of interest. If real interest rates are not adjusted, there will be excess demand in the labor market. t = 0 unless the real interest rate is adjusted. Then we move into an economy where the market is imperfect.

A supply shock is an unexpected event in which the supply of a product or commodity changes, causing a sudden change in price. A positive supply shock increases output and decreases prices, while a negative supply shock decreases output and increases prices.

Learn more about supply at

brainly.com/question/25843620

#SPJ4

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Greenbelt Construction has been a successful small home-building firm for years. The owner pays subcontractors slightly more tha
kipiarov [429]

Answer: Option (E)

Explanation:

Supply chain management is referred to as or known as broad/wide range of activities which are required in order to control, plan, and execute a commodity's flow, i.e. from the primary stage of acquiring raw material and thus production to the final stage of distribution to consumer, in most streamlined, efficient and effective way that is possible.

In other words it encompasses or encloses integrated execution and planning of a procedure which is required in order to optimize flow of the material, financial capital and information in areas which include sourcing, demand planning, production, storage and inventory management, logistics and also the return of defective products.

4 0
3 years ago
Performance, polygraph, or drug test are?
Mumz [18]

The correct answer is choice C.

Performance, polygraph and drug tests are sometimes required by employers in various fields in order to screen applicants.

6 0
3 years ago
F. What effect does a low unemployment rate have on business? what effect does a high unemployment rate have on business?
taurus [48]

The effect of low unemployment rate on business is that the productivity of business will fall, and the effect of high unemployment rate on business is that the productivity of business will raise.

<h3>What is unemployment rate?</h3>

The unemployment rate refers to the state of being unemployed. The unemployment rate is derived by dividing the total number of people in the labor force by the number of people who are jobless.

The labor force is the total number of people who are employed and unemployed. A low unemployment rate has the impact of lowering business productivity, whereas a high unemployment rate has the effect of increasing business productivity.

Therefore, the unemployment rate is defined as the state of being unemployed.

Learn more about the unemployment rate, refer to:

brainly.com/question/17255561

#SPJ4

6 0
2 years ago
Read 2 more answers
Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,
Nataly_w [17]

Answer:

The annuity will cost him $963,212.95.-

Explanation:

Giving the following information:

Cash flow= $75,000

Interest rate= 0.0525

n= 20

First, we need to calculate the final value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual cash flow

FV= {75,000*[(1.0525^20) - 1]/0.0525} + {[75,000*(1.0525^20)] - 75,000}

FV= 2,546,491.88 + 133,690.82= $2,680,182.70

Now, the present value:

PV= FV/(1+i)^n

PV= 2,680,182.70/(1.0525^20)

PV= $963,212.95

4 0
3 years ago
Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If the bank lends the maximum amount of
Scorpion4ik [409]

Answer:

check able deposits = $500

correct option is C. $500

Explanation:

given data

cash deposit = $100

reserve ratio = 20%

to find out

check able deposits

solution

we will apply here check able deposits formula that is express as

check able deposits = cash deposit + ( deposit cash - ( deposit cash × reserved ratio ) × \frac{1}{reserve ratio} )     ...........................1

put here value we get

check able deposits = $100 + ( $100 - ( $100 × 20% ) × \frac{1}{0.2} )

check able deposits = $500

correct option is C. $500

8 0
3 years ago
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