According to the Phillips curve analysis, disinflation happens when the actual rate of inflation is initially lower than the expected rate, temporarily raising the unemployment rate. However, as nominal wages decline, the unemployment rate will fall to its natural level and the actual and expected rates of inflation will balance out.
Disinflation refers to occurrences where the inflation rate has temporarily slowed and is used to indicate situations where it has only slightly decreased. Disinflation refers to the rate of change in the rate of inflation, as opposed to inflation and deflation, which talk about the direction of prices.
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Answer:
$651,300
Explanation:
Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.
<u>Calculation of the cost of purchase of the land:</u>
Purchase price $ 620,000
Demolition of the old building $ 23,000
Land preparation and leveling $ 8,300
Cost of purchase of the land $651,300
Answer:
a. shortage at the former equilibrium interest rate. This shortage would lead to a rise in the interest rate.
Explanation:
The equilibrium in the market for loanable funds is achieved when the quantities of loans that borrowers want are the same as the quantity of savings that savers provide. The interest rate adjusts to make these equal.
Answer:
A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.
The Fisher effect states that the nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.
Thus, the real interest rate in a particular country's economy equals the nominal interest rate minus the expected inflation rate.
All things being equal (Ceteris paribus), the expected inflation rate of a country's economy would eventually cause an equal rise in the interest rate that the deposits of the country's currency can offer. Also, as inflation increases, the real interest rate falls or decreases.
Answer:
In the painting of the coronation of Mary, Mary is being crowned by Jesus and God.
Explanation:
In the painting, "The Coronation of the Virgin", Mary, is being crowned by Jesus, the Son and God, the Father. The relationship that Mary had with Jesus, the Son was that she gave birth to Him. Mary was the mother of Jesus and a worshiper of God, the Father. The Holy Spirit is the part of the Trinity.
According to the scriptures of the Bible, Mary conceived Jesus, the Son of God through the Holy Spirit and gave birth to Jesus, the savior of the world.
The significance of the crown is that she is being crowned for being a faithful servant to God by obeying God. The outstretched arms represents that she is welcoming the family.
