Changes in relative prices may occur in a period of
inflation, stable prices or deflation.
A continuous increase in the prices of goods and services
over a time period is an inflation but sometimes prices could fall in the
inflation period. When the inflation rate falls below 0% then deflation occurs.
To avoid deflation and to keep the economy, central banks attempts to limit
inflation.
<span>The idea of the foot-in-the-door technique stipulates that if Shondra
thinks Alicia may refuse to lend her the shoes, she is more likely to get them if
she first asks to borrow something else that Alicia will refuse to give her,
and then ask to borrow the shoes.</span>
Answer: Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively higher and real GDP to be relatively higher.
Explanation: The expansionary monetary policy - a central bank uses their tools to stimulate the economy. A central bank pay increase the supply of money, lower interest rate and help increase demand. Real GDP (gross domestic product) is adjusted for inflation to show the value of all goods and services that an economy produced in any given year.
Answer:
The correct answer is d. $0.31 per client-visit; $24,766 per month.
Explanation:
The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)
the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.
Variable cost per unit = (28920 - 28235) / (13400 - 11207)
Variable cost per unit = $0.31 rounded off to two decimal places
The fixed cost = Total cost - total variable cost
Taking 13400 activity,
The fixed component is = 28920 - (0.31 * 13400) = $24766 per month
Thus, the correct answer is d.
Answer:
The three main limitations to national income accounting are: Errors in Measurement: Black Market and underground activities are not included when calculating GDP. This is because there is no way to accurately measure black market activity.