Answer:
B) 1.7
Explanation:
GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.
GDP deflator in 2009 will be:
Norminal GDP
Cost of apple= $1 in 2009
Apple produced =5 in 2009
Cost of oranges= $1.50 in 2009.
Orange produce= 5 in 2009
$1.00*(5)+$1.50*(5)
=5+7.5
=$12.50
Real GDP
Cost of apple= $0.50 in 2002
Apple produced =5 in 2002
Cost of oranges= $1 in 2002
Orange produce= 5 in 2002
0.50*(5)+$1.00*(5)
=2.5+5
=$7.50
GDP deflator = Nominal GDP/Real GDP)
=$12.50/$7.50
=1.666
approximately 1.7
Answer:
A) Aggregate demand will increase, especially for wealthy individuals.
Explanation:
Aggregate demand would increase, especially for wealthy individuals because disposable income would increase as a result of lower tax payable.
Answer:
$1,200 favorable
Explanation:
Given,
Standard unit price for direct materials, SP = $8 per gallon
Actual direct materials price, AP = $22,800
Actual number of direct materials, AQ = 3,000 gallons
Actual unit price for direct materials = Actual direct materials price ÷ Actual number of direct materials
Actual unit price for direct materials = $22,800 ÷ 3,000 gallons
Actual unit price for direct materials = $7.6 per gallon
We know,
Direct Material Price Variance = (SP − AP ) × AQ
Direct Material Price Variance = $(8 - 7.6) × 3,000 gallons
Direct Material Price Variance = $1,200 favorable
Flat money, commodity money, the gold standard and representative money is the money that would have the least value if people lost confidence in the government. Flat money is the currency that the government has declared as legal tender but it is not backed by a physical commodity. Representative money is any money that its face value is greater than its actual value. Commodity money is money whose value comes from the commodity in which it is made of. The gold standard is economic unit of account which is based on the fied amount of gold.
Answer:
12.51%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.10 × 26%) × ( 1 - 40%) + (0.10 × 3%) + (0.15 × 71%)
= 1.56% + 0.30% + 10.65%
= 12.51%
Simply we multiply the weightage with its cost
