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3 years ago

All else equal, what is likely to happen to the unemployment rate during a recession?

1 answer:

6 0

<span>When there is a recession, it is incredibly likely that the unemployment rate will rise in reference to the real gross domestic products going down. Unemployment will rise because in recession jobs become more scarce as products are not being purchased by consumers.</span>

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You are six months from graduating college and begin to think about your future. Knowing that you’ll soon be searching for a job

ludmilkaskok [199]

Answer:

a. Unemployment rate drops to 5.6% from 6.1%, the third straight drop in the last three months.

GOOD NEWS, a major factor that contributes to a decrease in unemployment is economic growth. Since unemployment is decreasing, you can assume that the economy is growing.

b. GDP comes in at $17 trillion this quarter, compared to $16.5 trillion last quarter.

GOODS NEWS, the economy is growing, therefore, there should be more jobs available.

c. Prices, as measured by the CPI, increased by 10% last year and it could be even higher this year.

BAD NEWS, a high inflation rate generally leads to monetary and fiscal adjustments which will cool down the economy. Even if the economy is still growing, it will soon stop doing so.

d. GDP drops by 2% in the 3rd quarter, after growing at 5% in the 2nd quarter.

BAD NEWS, the economy probably reached its zenith and once it reaches its highest point, the path is only downwards. The economy will probably soon enter a recession (or at least stop growing).

7 0

4 years ago

FREEEEEEEEEEEEEE brainliest!!

Ksju [112]

Answer:

how does brainliest work?

4 0

3 years ago

ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following

lara [203]

Answer:

a. ROI = income / Assets

Book Value Current Value

Software Division 0.175 0.13

Consulting Division 0.164 0.182

Venture Capital Division 0.093 0.088

<u>Workings:</u>

i. Book value

Software Division = 12,250/70,000=0.175

Consulting Division = 16,400/100,000=0.164

Venture Capital Division = 56,730/610,000 =0.093

ii. Current value

Software Division = 11,700/90,000=0.13

Consulting Division = 20,020/110,000=0.182

Venture Capital Division= 51,920/ 590,000=0.088

b. Residual income = Income - {Asset x Return on capital 12% }

Book Value Current Value

Software Division 3850 900

Consulting Division 4400 6820

Venture Capital Division -16470 -18880

<u>Workings:</u>

i. Book value

Software Division = 12,250-(70,000*12%)=3850

Consulting Division = 16,400-(100,000*12%)=4400

Venture Capital Division = 56,730-(610,000*12%) =-16470

ii. Current value

Software Division = 11,700-(90,000*12%)=900

Consulting Division = 20,020-(110,000*12%)=6820

Venture Capital Division= 51,920-(590,000*12%)=-18880

c. Economic Value Added ( EVA ) = Net Income After Tax - ( Amount of Capital x Weighted Average Cost of Capital [WACC] )

C. Software Division

(Value Base)

Book Current

Sales 100,000 100,000

Income 12,250 11,700

Assets 70,000 90,000

Liabilities 10,000 10,000

Capital invested 60,000 80,000

(Asset - Liabilities)

Tax on Income(30%) 3675 3510

Income after Tax 8,575 8,190

(Income - Tax on

income) (A)

Capital invested 6,000 8,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,575 190

Consulting Division

(Value Base)

Book Current

Sales 200,000 200,000

Income 16,400 20,020

Assets 100,000 110,000

Liabilities 14,000 14,000

Capital invested 86,000 96,000

(Asset - Liabilities)

Tax on Income(30%) 4920 6006

Income after Tax 11,480 14,014

(Income - Tax on

income) (A)

Capital invested 8,600 9,600

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,880 4,414

Venture Capital Division

(Value Base)

Book Current

Sales 800,000 800,000

Income 56,730 51,920

Assets 610,000 590,000

Liabilities 40,000 40,000

Capital invested 570,000 550,000

(Asset - Liabilities)

Tax on Income(30%) 17019 15576

Income after Tax 39,711 36,344

(Income - Tax on

income) (A)

Capital invested 57,000 55,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) -17,289 -18,656

8 0

3 years ago

How does the federal trade commission regulate business as an administrative agency?.

shusha [124]

The FTC is empowered to enforce rules of trade regulation that define unfair or deceptive actions or practices in great detail and to report to and advise Congress on legislative matters related to the economy. This is further explained below.

<h3>What is the federal trade commission?</h3>

Generally, The Federal Trade Commission (FTC) is a non-departmental executive body of the United States government charged with protecting consumers and enforcing federal antitrust laws.

In conclusion, The FTC is empowered to enforce laws of trade regulation that define unfair or deceptive actions or practices in great detail, and it may also report to Congress on economic matters and provide policy suggestions.

Read more about the federal trade commission

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4 0

2 years ago

. Which one of the following statements is TRUE?

Alborosie

Answer:

Direct deposit means that a person brings their paycheck to the bank and deposits it immediately after receiving it.

Explanation:

4 0

3 years ago