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2 years ago

What is the economic term used for sustained increase in the price of goods and services

Business

1 answer:

Shkiper50 [21]2 years ago

3 0

Answer:

Inflation

Explanation:

Inflation refers to a situation of a general increase in the prices of goods and services in the economy. As prices of goods and services rise, the cost of living goes up. Inflation results in the purchasing power of currency to diminish.

Economist uses the consumer prices index to determine the rate of inflation. Inflation means a basket of goods and services will cost more today than it did in the prior period. Rapid economic growth that results in too much money in circulation causes inflation.

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Elementary school teacher that’s the answer

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2 years ago

What is economic unity

NemiM [27]

Answer:

the state of different areas or groups being joined together to form a single country or organization.

Explanation:

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2 years ago

Boulter, Inc. began business on January 1, 2018. At the end of December 2018, Boulter had the following investments in debt secu

Mamont248 [21]

Answer:

C) $6,000 - $2,500

Explanation:

Trading Available for Sale as of December 31, 2018

Cost $60,000 $110,000

Fair value $54,000 $107,500

Income statements includes unrealized holding loss on trading securities = $60,000 - $54,000 = $6,000

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2 years ago

L.A. Clothing has expected earnings before interest and taxes of $63,300, an unlevered cost of capital of 14.7 percent, and a co

umka21 [38]

Answer:

Value of the company is $334,101

Explanation:

Value of unlevered firm = $\frac{EBIT(1-t)}{ke}$

Where;

EBIT = Earnings before interest and tax

t = tax rate

ke = Cost of equity (cost of capital)

Value of unlevered firm = $\frac{63,300(1-0.23)}{0.147}$

value of unlevered firm = $331,571.43

Value of firm = Value of unlevered firm + Debt (tax rate)

Value of firm = $331,571.43 + $11,000*(23%)

Value of firm = $334,101.43

Value of firm = $334,101

3 0

2 years ago

Aggregate demand shifts right if a. government purchases increase and shifts left if stock prices rise. b. government purchases

max2010maxim [7]

Answer:

The correct answer is option b.

Explanation:

Aggregate demand represents the overall demand of goods and services in the economy in a year. It is comprised of consumption spending, investment, government spending, and net exports.

An increase in the government spending will increase the aggregate demand, so the aggregate demand curve will shift to the left.

A decrease in the stock prices, on the other hand, will cause the aggregate demand to fall, shifting the curve to the left. This happens because decrease in stock prices causes the wealth of the investors to decline. The consumer spending decreases and so does aggregate demand.

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3 years ago