Answer and Explanation:
Economy is divided into two main fields: <em>Microeconomics and Macroeconomics</em>. Microeconomics studies the decisions of individuals and businesses while Macroeconomics is in charge of analyzing the economy as a whole including decisions made by governments and their countries. Thus:
A) <em>The effect of government regulation on a monopolist's production decisions (Macroeconomics).
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B) <em>The optimal interest rate for the Federal Reserve to target (Macroeconomics).
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C) <em>The government's decision on how much to spend on public projects (Macroeconomics).</em>
Answer:
<u>True</u>
Explanation:
If this $27,500 fine is actually per passenger, it could greatly incentivize airlines to cancel fewer flights than before. Consider that, most airline tickets are far lower than $27,500, so if airlines are paying fines worth many times more than they actually collect per individual tickets, they will incure great losses.
Answer:
If your required return on KacieCo stock is 15 %, the most you would be willing to pay for the stock today if you plan to sell the stock in two years is $26.43
Explanation:
Accoring to the given data we have the following:
D1= $3
D2=$3.50
P2=$28
Ks=15%
Therefore, in order to calculate the most P0 you would be willing to pay for the stock today if you plan to sell the stock in two years, you would have to use the following formula:
P0 = PV of D1 + Pv of D2 + PV of P2
P0 = D1/(1+ks)^1 + D2/(1+Ks)^2 + P2/(1+Ks)^2
P0 = 3/(1+15%) + 3.5/(1+15%)^2 + 28/(1+15%)^2 = $26.43
Answer:
The economy is expanding quickly.
Explanation:
Aggregate supply is a measure of the total supply of goods and services made available by the supplier in an economy.
The normal aggregate supply curve is one with a positive slope. That is as price increases there is an increase in aggregate supply, and when price reduces aggregate supply also reduces.
However when aggregate supply curve is vertical, only one level of output is produced no matter the rise or fall of price.
This indicates that the economy is producing at capacity, and any increase in price will not result in increase in output.
It does not mean that the economy is expanding quickly.
