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sukhopar [10]
3 years ago
9

Cost-push inflation is A. inflation caused by increases in aggregate demand that are not matched by increases in aggregate suppl

y. B. inflation caused by decreases in aggregate supply that generate an even larger decrease in aggregate demand. C. inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand. D. inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
Business
1 answer:
Mademuasel [1]3 years ago
4 0

Answer:

C. inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand

Explanation:

Inflation occurs when the cost of a basket of goods increases over a period of time. The purchasing power of money is reduced. It is characterised by low supply and high demand.

There are two drivers of inflation: cost push inflation and demand pull inflation.

Cost push inflation results when there is an increase in cost of production of goods and services.

This reduces the amount of goods supplied and increases their price.

Demand does not reduce in this scenario, so reduced supply does not match the excess demand.

On the other hand demand pull inflation occurs when there is increased demand for goods and services. Supply cannot meet the increased demand

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Answer

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Answer:

The correct answer is the option D: Both the foreseeable doctrine and the restatement doctrine.

Explanation:

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3 years ago
Raven Company has a target of earning $71,200 pre-tax income. The contribution margin ratio is 16%. What amount of dollar sales
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Answer:

$685,000  

Explanation:

First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:

contribution margin ratio=contibution margin/sales revenue

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2 years ago
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Answer:

The journal entry is shown below.

Explanation:

According to the scenario, the journal entry for the given data are as follows:

Journal entry

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