Answer:
is producing at a point where output is less than potential GDP.
Explanation:
When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.
Answer:
393 units will need to be sold to breakeven
Explanation:
Break even point is the point where a Company makes neither makes a profit nor a loss.
Step 1 : Calculate new variables
New Sales = $250 x 1.40 = $350
Variable Costs = $250 x 30 % = $75
New Fixed Costs = $120,000 x 90 % = $108,000
Step 2 : Break even (units)
Break even (units) = Fixed Costs ÷ Contribution per unit
= $108,000 ÷ ($350 - $75)
= 393 units
Thus, 393 units will need to be sold to breakeven
<span>The fact that Kellog is increases its promotion expenditure to counteract competitive responses means that </span>Kellogg's is in the maturity stage of the product life cycle. The maturity stage us the third stage of the product life cycle, and comes a<span>fter the </span>Introduction<span> and </span>Growth<span> stages.
</span>In this stage the companies are focused on maintaining their market share in the face of a number of different challenges.
Answer: 1. Convertible bond
2. Putable bond
3. Purchasing power bond.
Explanation:
The $100,000 investment is a convertible bond. This is a fixed-income debt security which yields interest payments. It should be noted that it can also be converted to equity shares or common stock.
Nazeem should pick a putable bond. This is because the puttable bond has a put option that is embedded ans he can also demand his principal to be paid early.
Nazem also recently bought bonds that have their interest rate tied to the consumer price index (CPI) so that he will be protected if inflation rates increase. Nazem has invested in purchasing power bond .
The democratic style of leadership seeks information, opinions, and preferences, sometimes to the point of meeting with the group, leading discussions, and using consensus <span>or majority vote to make the final choice.</span>
