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3 years ago

A recession is often considered to be:_______

Business

1 answer:

Gennadij [26K]3 years ago

7 0

Answer:

The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.

Explanation:

Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.

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In year 1, the Consumer Price Index was 120 and the average nominal income was $30,000. In year 2, the Consumer Price Index was

Cerrena [4.2K]

Answer:

Real income has increased by $720 in terms of dollar and 2% in percentage

Explanation:

The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.

Real income = Nominal income × CPI Base year/ CPI in current year

Real Income = 32000 × 120/125

=$30,720

Change Real income

Change in real income ($) = 30,720 - 30,000

= $ 720

Change in real income (%) = (720/30,000) × 100

= 2%

Real income has increased by $720 in terms of dollar and 2% in percentage

3 0

3 years ago

Prepare a statement of cash flows

notsponge [240]

Answer:

Required 1

1. operating activities (OA) and investing activities (IA)

2. financing activities (FA)

3. financing activities (FA), operating activities (OA) and investing activities (IA)

4. financing activities (FA)

5. operating activities (OA)

6. financing activities (FA)

Required 2

All-Star Automotive Company

Statement of cash flows for the year ended 2013

Cash Flow from Operating Activities

Service Revenue $25,000

Salary Expense Paid - $14,000

Utilities Expenses - $2,800

Net Cash from Operating Activities $8,200

Cash Flow from Investing Activities

Land Purchase - $6,000

Proceeds from Sale of Land $9,000

Net Cash from Investing Activities $3,000

Cash Flow from Financing Activities

Issue of Common Stock $50,000

Loan Payable Acquired $5,000

Repayment of Loan - $2,000

Dividends Paid - $5,000

Net Cash from Financing Activities $48,000

Movement during the year $59,200

Cash and Cash Equivalents at the Beginning $9,000

Cash and Cash Equivalents at the End $68,200

Explanation:

Cash Flow from Operating Activities

This section shows the cash derived from daily operating activities of the business .

Cash Flow from Investing Activities

This section shows the cash derived from acquisition or sale of tangible and intangible assets of a long term.

Cash Flow from Financing Activities

This section shows the cash derived from the sources of finance and the repayments thereoff.

5 0

3 years ago

Doyle Company issued $226,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is

Thepotemich [5.8K]

Answer:

Dr cash $226,000

Cr Bonds payable $226,000

31st December year 1

Dr cash $74,000

Cr Lease revenue $74,000

Dr interest expense $11,300

Cr Cash $11,300

31st December year 2

Dr cash $74,000

Cr Lease revenue $74,000

Dr interest expense $11,300

Cr Cash $11,300

Explanation:

Upon the receipt of $226,000 from bond issue,cash acount would be debited with $226,000 and bonds payable account would be credited with the same amount.

When land purchased,the land account is debited with $226,000 and cash is credited with $226,000.

The receipt of $74,000 from lease rental means that cash is debited and the lease revenue is credited.

The coupon interest on the bonds=$226,000*5%=$11,300

The coupon interest is debited to interest expense and credited to cash in each of the two years.

find attached t accounts.

Download xlsx

7 0

3 years ago

If real gdp is $200 billion, full employment gdp is $400 billion, and the marginal propensity to consume is 0.75, then congress

madreJ [45]

If real GDP is $200 billion, full employment GDP is $400 billion, and the marginal propensity to consume is 0.75, then Congress should-----

increase government purchases by spending by $50 billion.

What is marginal propensity?

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

Full employment:

is an economic situation in which all available labor resources are being used in the most efficient way possible. Full employment embodies the highest amount of skilled and unskilled labor that can be employed within an economy at any given time.

Learn more about real GDP:

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3 0

2 years ago

Suppose that in 1984 the total output in a single good economy was 12,000 buckets of chicken. Also assume that in 1984 each buck

xxMikexx [17]

Answer:

The GDP price index for 1984 using 2005 as the base year was 80%

Explanation:

The GDP price index:

X/100 = $16/$20

X = 80%

Therefore, The GDP price index for 1984 using 2005 as the base year was 80%

6 0

3 years ago