Answer:
To restore full employment in the short run during an inflationary gap condition, the government has to apply contractionary fiscal and monetary policies that will reduce the supply of money.
Explanation:
An inflationary gap is an economic situation that is characterised by excess demand. Particularly it is that situation when the real gross domestic product of a country is greater than the projected gross domestic product. In this condition, actual aggregate demand is higher than potential aggregate demand implying that more goods and services are needed to satisfy consumers. From another perspective, this could be caused by a fall in aggregate supply while aggregate demand remains stable.
Government intervention in this case is to reduce the money supply by implementing contractionary fiscal policies such as increasing taxes, reducing government expenditure which in turn reduces disposable income. Contractionary monetary policies that could be applied include increasing short-term interest rates, increasing reserve requirements. Though this policies come in with some unwanted side effects such as unemployemnt, they however serve as short term adjustment measures for an inflationary gap condition.
Mercantilism is the name of the theory
Answer:
Option "A" is the correct answer to the following statement.
Explanation:
Implicit cost is a special type of opportunity cost, its generate when an organization or a business has to pay his cost and does not necessary to show it. for example, a businessman gets a salary from his organization.
- In this situation, Wilson owns a club and works as an accountant in it.
- This type of cost defines an Implicit cost for Wilson's health club.
The correct answer is C. Average daily balance method.
In average daily we consider balance interest or owed at the end of the day.
To calculate debt credit card we take the percentage of the total amount of current balance which will be termed as the interest then add one percent of the principal.
T o calculate for daily credit card balance we total the balance in the billing cycle everyday then you will divide your total with the number of days which in the cycle.
