Answer:
The answer is D.
Explanation:
Economy shock is when an expected shock happens to an economy. This shock can be positive or negative.
In the vein, supply shock is an unexpected event that happens to the supply of a product. It can also be positive or negative too.
Positive supply shock increases output while negative supply shock decreases output.
For a temporary negative supply shock and monetary policy makers try to stabilize economic activity in the short run, the following will occur:
1. Aggregate demand curve shifts rightward, meaning demand will rise because supply will automatically reduce. This makes demand to be higher than supply.
2. Inflation rate will be high. Because supply is reduced, price of goods will increase and this is an inflation.
3. Output will be at its potential. When an economy is close to potential output, the price will increase more than the output and aggregate demand will rises.
Answer:
b) are called real accounts
Explanation:
Real accounts are those accounts which are not closed at year end as like other accounts, their balances are carried forward to another period.
All the balance sheet accounts are real accounts as they do not close at year end, as there balances are carried forward to next period, whether they are assets long term or short term or whether they are liabilities, long term or short term or equity.
Thus correct option is
b) are called real accounts
Answer:
E. 1.667
Explanation:
Current ratio is computed as;
= Current assets / Current liabilities
Current asset = Cash $200 + Marketable securities $400 + Accounts receivable $600 + Inventory $800
= $2,000
Current liabilities = Accounts payable $500 + Notes payable $700
= $1,200
Current ratio = $2,000 / $1,200
= 1.667
Answer:
$214,000
Explanation:
The total reservation cost per month is given by the following expression:
Where 'n' is the number of monthly reservations.
If there are 200,000 reservations for passengers taking a trip next month, the reservation cost is:
Total reservation cost is $214,000.