Answer:
1. Easing
2. A higher
Explanation:
An adverse inflation shock when modeled is the upward shift of the Short run aggregate supply curve, this brings about higher inflation and causes a lowering of output.
The self-correcting mechanism of the economy will cause inflation to decrease gradually until the economy is back in long-run equilibrium at the original level of inflation.
If there is an intervention with monetary easing, aggregate demand will shift forward and a long-run equilibrium will be established where inflation remains at the higher level.
Country ABC shows that it has ABSOLUTE ADVANTAGE over Country XYZ.
The absolute advantages is proven when Country ABC was able to produce a unit of good 1 with fewer resources than Country XYZ.
Absolute advantage is different from comparative advantage.
Comparative advantage deals with opportunity cost. If a country is able to produce goods at lower opportunity cost than its trading country, then, it has comparative advantage.
Answer:
a. Income Tax Expense (Dr.) $298,000
Deferred Tax (Dr.) $30,000
Income Tax Payable (Cr.) $328,000
Explanation:
b. Income Tax expense (Dr.) $30,000
Allowance to reduce deferred tax value to NRV (Cr.) $30,000
Income tax payable is calculated based on tax rate of 40%.
$820,000 * 40% = $382,000
Option answer:
c. Interest = $54 and Balance = $1254
Answer:
A = $1,254.00
I = A - P = $54.00
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 3%/100 = 0.03 per year.
Solving our equation:
A = 1200(1 + (0.03 × 1.5)) = 1254
A = $1,254.00
The total amount accrued, principal plus interest, from simple interest on a principal of $1,200.00 at a rate of 3% per year for 1.5 years is $1,254.00.
