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Natasha_Volkova [10]
3 years ago
12

After a prolonged period of high inflation the government of Oceania decides to set a target of 0% inflation going forward. As t

he new assistant economic minister, you are tasked with critiquing this policy. Which criticism of the 0% inflation target is plausible yet controversial among economists?
Business
1 answer:
Taya2010 [7]3 years ago
6 0

Answer:

The rise in unemployment.

Explanation:

The Phillips curve analyzes the relationship between inflation and unemployment, ie the trade-off between these two variables. Thus, rising inflation reduces unemployment, while a monetary policy of reducing inflation increases unemployment. Thus, the criticism would be that a 0% inflation target policy would be sacrificing employment, that is, it would be necessary to reduce growth and increase unemployment to reach very low levels of inflation.

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The measure used to report price changes at the wholesale level is the:
ivanzaharov [21]

The measure used to report price changes at the wholesale level is the <u>"Producer Price Index (PPI)".</u>


The producer price index (PPI) is a group of indexes that estimates the normal change in offering costs gotten by household makers of merchandise and enterprises after some time. The PPI estimates value changes from the point of view of the seller and varies from the buyer value record (CPI), which estimates value changes from the buyer's viewpoint. The PPI thinks about three regions of generation: industry-based, product based and item based last interest transitional interest. It was known as the discount value file, or WPI, until 1978.  

5 0
3 years ago
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the fol
lilavasa [31]

Answer:

Given Below

Explanation:

<em><u>Golden Eagle Company</u></em>

<em><u>General Journal </u></em>

<em><u>Adjusting Entries December 31st </u></em>

Sr. No                Particulars                 Debit              Credit

1.              Supplies   Expense           $ 1000 Dr.

                     Supplies Account                                      $ 1000 Cr.

The supplies that were at the end of Nov have been used and new supplies purchased are still on hand.

2.          Insurance   Expense           $ 1000 Dr.

                  Prepaid Insurance                                       1,000 Cr.

Insurance cost is $1,000 per month. Insurance of $1000 expired during the month of December.

3.                  Salaries Expense        $ 14000 Dr.

                                Salaries Payable                           $ 14000 Cr.

Salaries for December owed for December are $14,000.

4.             Unearned Revenue            $ 500 Dr.

                                  Revenue Earned                       $ 500 Cr.

Defered Revenue earned at the end of December.

3 0
3 years ago
Fox Co. had 120,000 shares of common stock outstanding at January 1. On July 31, it issued 60,000 additional shares of common st
balu736 [363]

Answer:

180 000 common stock shares outstanding

Explanation:

preference shares are not used in calculating earning per share. Earning per share is the part of the firm's profit that is attributed to common stock shares. It is an indicator of financial strength of a company. It also shows the intrinsic value of the company's shares. This can be used to determine if a share is overvalued or under valued in the equity market.

The company  has 120, 000 common stock shares and issued additional 20,000 common stock shares totaling 180,000 common stock shares.

8 0
3 years ago
Johnson Corporation unadjusted trial balance at year-end include the following accounts. Compute the uncollectible account expen
Alborosie

Answer:

Explanation:

The journal entries are shown below:

A. Uncollectible Expense A/c Dr $11,520

            To Allowance for doubtful accounts A/c  $11,520

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1%

= $11,520

B.  Uncollectible Expense A/c Dr $12,960

            To Allowance for doubtful accounts A/c  $12,960

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1.5% × 75%

= $12,960

C.  Uncollectible Expense A/c Dr $9,816

              To Allowance for doubtful accounts A/c  $9,816

(Being the uncollectible expense is recorded)

The computation is shown below:

= $12,000 - $2,184

= $9,816

5 0
2 years ago
A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to
ruslelena [56]

Answer:

A 6,500

Explanation:

The number of units to be sold is calculated as;

= (Pretax income + Fixed costs) ÷ Contribution margin

Given that;

Pretax income = $35,000

Fixed costs = $420,000

Contribution margin

= Selling price per unit - Variable cost per unit

= $200 - $130

= $70

= ($35,000 + $420,000) ÷ $70

= 6,500 units

6 0
2 years ago
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