Answer:
1) 12/3= 4 gallons of milk per hour is her real wage
Her nominal wage is $12 per hour, we then divide her nominal wage by the price of gallon of milk in order to find out how many gallons of milk can she afford from one hour of work. 12/3=4 so 4 gallons of milk is her real wage per hour.
2) Workers and firms negotiate compensation packages and agree on a Nominal wage with those expectations in mind, as nominal wage is the actual amount of money that they get. If the price level turns out to be lower than expected, a workers nominal wage is the same because he will be paid the same amount of money, but his real wage will be higher than expected, because real wage refers to the purchasing power of your money and when price levels are lower than expected the worker can buy more goods and services from the same nominal wage, which means that his real wage is higher than expected
3) Her Nominal wage increased from 12 to 12.36 which is
(12.36-12) =0.36
0.36/12= 3%
So her Nominal wages increased by 3%
If inflation was 3% the price of milk would have been (1.03*3)= 3.09 but because inflation was 2% the price of milk was (1.03*3) = 3.06 so in order to find out the increase in real wage we will subtract inflation from the increase in nominal wage
Increase in nominal wage 3%
Inflation 2%
Real wage increase =3-2
= 2% real wage increase.
Explanation:
Answer:
$82,500
Explanation:
the journal entry to record the bond issuance
Dr Cash 1,650,000
Cr Bonds payable 1,650,000
bonds sold at par
Every 6 months it will pay = $1,650,000 x 10% x 1/2 = $82,500
journal entry to record first coupon payment
Dr Interest expense 82,500
Cr Cash 82,500
Explanation:
The study of business is about how individuals and groups of people organise, plan, and act to create and develop goods and services to satisfy customers. Business is influenced by and impacts on the cultural, ethical, environmental, political, and economic conditions of the day
