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goldenfox [79]
3 years ago
9

Which of the following describes the effect of the business cycle on the inflation rate and the unemployment rate? A. The unempl

oyment rate increases and the inflation rate falls during expansions. B. The unemployment rate falls and the inflation rate falls during recessions. C. The unemployment rate increases and the inflation rate increases during expansions. D. The unemployment rate increases and the inflation rate falls during recessions. Why might the unemployment rate continue to rise during the early stages of a recovery? A. Employment growth may be slow relative to the growth in the labor force. B. The number of discouraged workers may continue to increase. C. Some firms continue to operate well below their capacity even after a recession has ended. D. Because both (a) and (c) are true.
Business
2 answers:
Pani-rosa [81]3 years ago
7 0

Answer:

The correct answer are option D for both questions.

Explanation:

Recessions is characterized with decrease in consumer and investment spending. During recessions there is a decline in inflation rate and the unemployment rate increases.

While during expansion, there is a boost in economy. So, with increase in investment and production, the unemployment rate falls. There is a rise in inflation rate as well.

Though even in the stages of recovery, the unemployment rate continues to increase because some firms are pessimistic and are operating below their capacity. Also, the rate of growth of labor force is higher than rate of employment growth, which leads to increase in unemployment.  

user100 [1]3 years ago
7 0

Answer:

Answer to part 1: D

Answer to part 2: D

Explanation:

Part 1:

Inflation rate is the rate at which prices rise over time resulting in reduced purchasing power, that is loss of purchasing value per dollar spent. Unemployment rate is the percentage of unemployed workers in the total labour force of a given country. Business cycle expansion part of the cycle when the economy is growing whereas a recession is the part of the cycle  when  the economy is performing below its productive capacity. The inflation rate has an inverse relationship with the unemployment rate. Therefore, when inflation decreases, the unemployment rate increases and when inflation increases, the unemployment rate decreases. Given these principles and definition, unemployment would decrease during economic expansions and increase during recessions whereas inflation would increase during economic expansions and decrease during recessions. With this in mind, the correct answer to the first question is choice D

Part 2:

The period immediately following a recession is defined as economic recovery. it is also considered to be the first stage of economic expansion. During recovery, the productive capacity of the economy is just beginning  to pick up and there is uncertainty regarding the sustainability of continued economic growth at that point in time. During this phase, national income may grow at a steady rate or experience some varied growth rates leading to some uncertainty at the firm level. Therefore, firms may be hesitant to take on new projects and employment opportunities may not be as many as the number of workers willing and available to work. Owing to this, some firms may be cautiously working below their full capacity. Choice D encompasses these two points.

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Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account. Rev
Mkey [24]

Answer:

$35,000

Explanation:

Data provided in the question:

Accounts Receivable at the start of the year = $6,000

Accounts Receivable at the end of the year = $9,000

Revenues for the period = $38,000

Now,

cash collected from the customers

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3 years ago
Label each of the following scenarios with the correct combination of price change and quantity change. In some scenarios, it ma
ZanzabumX [31]

Explanation:

Classifying of each situation with the correct combination of change in price and quantity:

a. On a hot day, both demand for lemonade and supply of lemonade increase - Pp? Q increase

b. On a cold day, both demand for ice cream and the supply of ice cream decrease -  Pp? Q decrease

c. When Hawaii's Mt. Kilauea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases- P increase Qq?

d. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster - P decrease Qq?

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3 years ago
Suppose two economists are debating a tax reform bill. Both economists agree that the bill would increase the after-tax income o
valentina_108 [34]

Answer:

d) Differences in values.

4 0
2 years ago
In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventor
Rina8888 [55]

Answer:

a. Overstates Year 1 cost of goods sold.

b. Understates Year 1 net income

c. Understates Year 2 cost of goods sold

Explanation:

a. The formula for Calculating the Cost of Goods sold is;

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.

b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.

c. Going by the formula in <em>a;</em>

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.

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3 years ago
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