Answer: d. inflation will increase.
Explanation:
The Natural rate of unemployment is the long term rate of unemployment which means that it is the rate associated with the Potential GDP.
If the Actual unemployment is less than this natural rate, it means that the Economy is performing better than the potential GDP. When this is happening, it means that the economy is overheating.
One of the symptoms of an overheated economy is increased inflation as more people can afford to buy goods and services. Inflation is therefore more probably rising in this economy.
Answer:
The answer is: B) In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas.
Explanation:
Usually a sustained economic growth would lead to an increase in the sales of high quality products. Hill and Dale sell high quality expensive products, so the only thing that could hurt their sales is that people don't go camping anymore. The only option that could lead to lower demand is that Boravia's economy is doing so well that its citizens can now afford to travel to other countries instead of camping.
Answer:
0.6
Explanation:
Data provided :
Mean = 100
Standard deviation = 20
Salvage value of the tree = $ 0
Actual cost of the tree = $ 20
Selling cost of the trees = $ 50
Now, the cost of shortage = Selling cost - actual cost = $ 50 - $ 20 = $ 30
and the outrage cost = actual cost = $ 20
Now,
the service level is calculated as:
service level = 
on substituting the value, we get
service level = 
or
Service level = 0.6
Answer: the options are added below:
A. market forces would quickly direct an economy back to full employment.
B. lower wages would cause the central bank to reduce the money supply and thereby prolong the recession.
C. lower wages would stimulate inflation and thereby prolong the recession.
D. powerful trade unions and large corporations made wages highly inflexible.
The correct option is D.
Explanation: A Trade Union is also known as a labour union and it is an association of workers in a particular trade, industry, or company that is created for the aim of negotiating improvements in wages and salaries, benefits, better working conditions, or social and political status through collective bargaining.
The view of Keynes is that the trade unions that have become powerful have, in conjunction with large corporations, made wages highly inflexible.
What this means is that they always make sure that there will be no supply of labor if the wages are low, therefore Keynes is of the view that lowering wages will not direct a recessionary economy back to full employment, rather, increasing the wages will ensure that the trade unions and large corporations supply labor and therefore increase employment.
