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3 years ago

When total demand outpaces actual output in the economy, the economy usually enters?

1 answer:

8 0

The economy usually enters into DEMAND PULL INFLATION. This situation is usually describes as too much money chasing too few goods. Demand pull inflation is characterized by increase in the prices of goods and services, increase in real gross domestic product and decrease in unemployment.

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How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 39 years at an annual interest ra

Solnce55 [7]

Answer:

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to $A=P(!+\frac{r}{100})^n$

$1000000=500000(!+\frac{1.79}{100})^n$

$2=(1.0179)^n$

Taking log both side

$log2=nlog1.0179$

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So $1000000=500000(1+\frac{2.34}{100})^n$

$2=(1+\frac{2.34}{100})^n$

$2=1.0234^n$

taking log both side

log 2 = n log 1.0234

n×0.01 = 0.3010

n = 30.10 year

8 0

3 years ago

Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domesti

Andreyy89

Answer:

The growth rate of the U.S economy in 2011 was 5.65%

Explanation:

This is a simple calculation

We use this formula to calculate percent changes from one period to another:

% change = $\frac{New Value - Old Vaue}{Old Value} * 100$

We have that the GDP for 2010 was $11,150 billion and the GDP in 2011 was $11,780 billions we then apply the formula:

% change = $\frac{11,780 - 11,150}{11,150} * 100$

% change = $\frac{630}{11,150} = 0.056 * 100 = 5.65%$

This means that the growth rate of the U.S economy in 2011 was 5.65%

7 0

3 years ago

Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital alloc

Mice21 [21]

Answer:II) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. III) Investors choose the portfolio that maximizes their expected utility.

Explanation:The capital allocation line is a line created in a graph by investors in an economy to display or identify the potential risks involved in taking risky decisions. This line is one the determining factors to ensure that the investor has adequate knowledge about the risky nature of a capital investment.

Investors generally choose portfolios that guarantee maximum profits with reduced chances of loss. More risk averse investor will choose or opt for less risky portfolio.

4 0

3 years ago

Since 2008, Ben has owned all 100 outstanding shares of N and M Corporation’s stock. Ben’s basis for the stock is $50,000. In 20

FromTheMoon [43]

Answer:

A. $75,000 dividend

Explanation:

This is not a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.

The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.

6 0

3 years ago

When the economy is growing, total output is _____ and total income is _____.

arsen [322]

Increasing ,increasing
the reason is that when the economy is growing more money is flowing ,unemployment is decreasing so more goods and services are produced ,as a result of low unemployment ,more consumption and total output increasing total income is increasing

8 0

3 years ago

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