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Anarel [89]
3 years ago
9

In the base year in a small island macroeconomy, nominal GDP was $400m. In a later year when the general level of all prices was

twice as high, nominal GDP reached $1000m. Between the base year and the later year: A. Real GDP declined. B. There was real GDP growth by more than 100% C. There was real GDP growth, but by less than 100% D. Inflation occurred.
Business
1 answer:
Cerrena [4.2K]3 years ago
8 0

Answer:

Both options C and D are correct.

Explanation:

Inflation refers to an increase in the general price level of goods and services overtime. Since it is conveyed in the question that the general price level in a later year became twice as high, inflation definitely occurred. Hence, option D is correct.

Nominal GDP is the value of the total output at current market prices. Real GDP adjusts that value for inflation. As prices double, nominal GDP ought to increase from $400m to $800m. However, it actually rose to $1000m. This additional increase of $200m shows that the real GDP has risen. However, the increase in real GDP is less than 100%. This implies option C is also correct.  

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What's the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%
KengaRu [80]

Answer:

PV of Perpetuity = $5000

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

PV of Perpetuity = 250 / 0.05

PV of Perpetuity = $5000

3 0
3 years ago
3. Which of the following is an example of a goodwill message?
Svetllana [295]

Answer:. focus entirely on the candidate with details such as examples of accomplishments, ...

Explanation:

8 0
3 years ago
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departme
Advocard [28]

Answer:

From this description, it can be inferred that Fantastic Flavors uses a(n) Team-based new-product developmen approach

Explanation:

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7 0
3 years ago
Suppose a country has a money demand function ( M/P )^d = kY , where k is a constant parameter. The money supply grows by 12 per
mote1985 [20]

Answer:

Part A)

Inflation Rate = 12% - 4%

Inflation rate = 8%

Part B)

If the genuine income was higher, the expansion level would diminish subject to the buyer's spending limitations. As such, they will make a similar measure of cash yet their buying power per dollar will increase.  

Part C)

in the current scenario, increment in cash would cause the expansion rate to increment. On the off chance that we consider the past and occasions, for example, hyperinflation, take a gander at what the reason was. Governments were printing cash to pay obligations, which was diminishing the estimation of their money. Right now, would get paid and race to the store to go through their cash in light of the fact that their dollars today may just be worth 50 pennies tomorrow or at times, the following hour. Thus, our answer is if the speed of cash continues developing, expansion will continue developing also. These two factors are star repetitive with one another significance they move together.

5 0
3 years ago
Bengal Co. provides the following...Bengal Co. provides the following sales forecast for the next three months: JulyAugustSeptem
svetoff [14.1K]

Answer:

8,955 units

Explanation:

Given that,

Sales in July = 9,500

Sales in August = 10,200

Sales in September = 6,050

Ending finished goods inventory = 30% of the next month's sale

Budgeted production units for August:

= Sales + Closing inventory - Opening inventory

= Sales + (30% of September sales) - (30% of August sales)

= 10,200 + (0.3 × 6,050) - (0.3 × 10,200)

= 10,200 + 1,815 - $3,060

= 8,955 units

7 0
3 years ago
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