All categories

3 years ago

Is it preferable for central banks to primarily target inflation or unemployment? Why?

Business

1 answer:

elena-14-01-66 [18.8K]3 years ago

8 0

Answer:

he central bank uses monetary policy to influence money supply, prices and output in the economy. ... A decrease in aggregate demand would result in fall in prices and inflation would fall. Particularly, there is no thumb rule for deciding whether the primary target for central bank should be inflation or unemployment

You might be interested in

If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00

Eduardwww [97]

Answer: B. The firm hires 45 workers and earns a $1200.00 Economic Profit

Explanation:

According to the table, when the Market Equilibrium Wage Rate is $105, the number of workers to hire would be 45 and the revenue would be $7,425.

If 45 workers are hired, they would cost:

= 45 * 105 per worker

= $4,725

Added to the fixed cost, the total cost would be:

= 4,725 + 1,500

= $6,225

The profit would be:

= Revenue - cost

= 7,425 - 6,225

= $1,200

3 0

3 years ago

Over time, members of the supply chain often formalize their relationship by entering into contracts that dictate various terms,

Evgen [1.6K]

Answer:

<em>c) contractual vertical marketing system.</em>

Explanation:

A contractual vertical marketing system <em>requires a legal agreement to manage the overall process between the various levels of the distribution or production chain.</em>

This system allows businesses to take advantage of economies of scale and advertising bounds.

Franchise system, sponsored retail and sponsored wholesale are aspects of a vertical marketing contractual framework.

4 0

3 years ago

g An automobile dealer expects to sell 529 cars a year. The cars cost $11,000 plus a fixed charge of $500 per delivery. If it co

harkovskaia [24]

Answer:

Order size = 23 cars

The number of orders = 23

Explanation:

The economic order quantity (EOQ) is the order size that reduces the balance of holding and ordering cost. It is to be noted that at EOQ, the carrying cost is equal to the holding cost.

The EOQ is computed as shown below;

= √ 2 × Co × D)/Ch

Co = Ordering cost

D = Annual demand

Ch = Carrying cost

EOQ = √ 2 × 500 × 529 / 1,000

EOQ = 23

Number of cars to be ordered per time, I.e optimal order size = 23

Order size = 23 cars

2. The number of times orders should be placed per year would be calculated as;

Number of orders = Annual demand / Order size

Number of orders = 529 / 23

Number of orders = 23

4 0

2 years ago

ECONOMICS, PLEASE HELP.

Nina [5.8K]

Equilibrium is the point where supply meets demand. Look at the table and see where those two columns are the same.

For B. look at the chart and see at 1,50 rent (the first column) the demand is greater than supply or not. If demand is less than supply, there is a surplus. If demand is higher, there is a shortage.

This applies to question C as well. Look at the first column, find the rent, and see if there is more supply or more demand.

3 0

3 years ago

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy t

MatroZZZ [7]

Answer: Income earned for cups = $1,000

Explanation:

Given:

Materials cost = $40,000

Labor cost = $44,000

Remixing cost amount to $2,000

TSC sold the platters for $100,000 and the cups for $12,000

There will be a decrease in net income due to non-selling of cups

= $12,000 - $2,000

= $10,000.

Thus, the Company's total income will decrease by $10,000 if it stops making and selling cups.

Joint cost allocated to cups

= (40,000 + 44,000)×12,000 ÷ (100,000 + 12,000)

= $9,000

∴

Income earned for cups

= $12,000 - $2,000 - $9,000

= $1,000

7 0

3 years ago