Answer:
a. "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation is on the right course."
⇒ RECOVERY. Economic recovery refers to the economy starting to grow again after a period of recession. A rightward shift in the aggregate supply curve should decrease unemployment and reduce inflation.
b. "The nation's inflation rate rose to a record high last month, the government reported yesterday. The consumer price index jumped 0.3% in January. Coupled with the announcement earlier this month that unemployment had risen by 0.5 percentage points, the reports suggested that the first month of President Nixon's second term had gotten off to a rocky start."
⇒ STAGFLATION. Stagflation refers to a combination of high inflation and high unemployment. A leftward shift in the aggregate supply curve can result in stagflation.
c. "President Carter expressed concern about reports of rising inflation but insisted the economy is on the right course. He pointed to recent reductions in unemployment as evidence that his economic policies are working."
⇒ PHILLIPS. According to the Phillips curve, inflation and unemployment are inversely correlated. if inflation goes up, unemployment should go down. Phillips theory was discredited due to stagflation occurring during Nixon's presidency. Nixon created stagflation for the first time in the US since it isn't normal that inflation rises as unemployment increases. That shows you how good a president he was, he even invented new things for Americans to enjoy.
<span>(10,287.56 - 10,005.23) / 10,287.56 =
(282.33) / 10,287.56 = 0.0274
0.0274/100 = 2.74%
</span><span>At the beginning of the day, the dow jones index was at $10,287.56. at the end of the day, the dow jones index was at $10,005.23. </span>The rate of change of the dow jones on this particular day is 2.74%
Answer:
Debit Credit
1) Allowance for doubtful accounts $1,500
Accouts receivable $1,500
2) Cash $1,000
Bad debt recovery account $1,000
Explanation:
1) Since the company adopts the allowance method to account for uncollectibles, it is expected that there would still be some buffer in that account to take care of the write-off. So, that account has to be debited to extinguish the accounts receivables.
2) Now that there is a recovery from Green, cash has to be debited, first of all to recognize the receipt and then credit goes to bad debt recovery account, which reports to income statement.
Answer:
Explanation:
B-Quantity of decreased sales day the price of sugar
Answer:
The incremental cost is ($10,360)
Explanation:
<u>Analysis of total cost over the 5 year period</u>
Retain Old Machine Buy New Machine
<em>Variable / Incremental Operating</em>
<em>Costs</em>
Old Machine 124,750
New Machine 97,800
<em>Old Machine Book Value</em>
Retain: Annual depreciation 8,430
Buy : Lump sum written off 8,430
Old Machine Disposal (8,490)
Purchase Cost of New Machine 25,080
Total Cost 133,180 122,820
The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)