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AfilCa [17]
3 years ago
11

A period of very low inflation would most likely lead to

Business
2 answers:
nevsk [136]3 years ago
8 0
Inflation is an increase in price and decrease of purchasing. If inflation is low, there will be an increase in aggregate demand.
 
Aggregate demand is the total of all goods and services produced during a period of time. If the prices rise, consumers tend to spend less money because the prices could keep rising and they are preparing for the future. 
Dafna1 [17]3 years ago
6 0

<u>A period of very low inflation would most likely lead to an increase in the aggregate demand in the economy.  </u>

Further explanation:

Implication of low inflation rate: A low inflation rate implies that the purchasing power of a specific amount of money rises. A very low inflation period will enable consumers to have a large basket of goods and services in exchange for a specific amount of money.  

Effect of low inflation on the economy: A period of low inflation rate will turn into an increase in the aggregate demand in the economy. Since a low inflation rate in the economy provides benefits to the consumers in the form of increasing their purchasing power. Thus, the aggregate demand in the economy rises. People will demand number of goods and services as a result in order to take advantage of increased purchasing power.  

Therefore, the measure of aggregate demand rises in the economy as a result of a period of low inflation.  

Learn more:

1. Learn more about inflation and economy

<u>brainly.com/question/3310349 </u>

2. Learn more about inflation

<u>brainly.com/question/3370347 </u>

3. Learn more about the effect of inflation

<u>brainly.com/question/2974782 </u>

<u> </u>

Answer details:

Grade: Senior School

Subject: Economics

Chapter: Aggregate Demand and Aggregate Supply

Keywords: a period, of low inflation, would most, likely lead to, low inflation rate, the purchasing power of a specific amount of money rises, consumers can purchase, a large basket of goods and services, the advantage of increased purchasing power, effect of low inflationary period.  

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When using the first-in, first-out (FIFO) method of process costing, equivalent units for work done during this period is equal
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Answer:

In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period

Explanation:

Under the FIFO following are the formulas needed for determining the equivalent unit of production. Any of the following formula should be used for calculated the same

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Although Gloria was aggressively recruited by PaperKlip Office Supplies, the treatment of her now that she is in the company has
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3 years ago
describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. which sho
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A company in monopolistic opposition produces an allocatively green output degree even as a company in best opposition produces a productively green output degree.

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Therefore, it's far viable for the monopolist to keep away from opposition and hold making tremendous monetary income withinside the long run. One feature of a monopolist is that it's far a income maximizer. Since there's no opposition in a monopolistic marketplace, a monopolist can manage the charge and the amount demanded. The degree of output that maximizes a monopoly's income is calculated through equating its marginal value to its marginal revenue.

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Answer:

Simple payback is 4 years

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Payback period is the time period in which the project recovers the initial cost incurred. Lower the payback period the more beneficial will be the project.

Simple payback = $100,000 / $25,000 = 4 years

Discounted Payback

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