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Sauron [17]
3 years ago
13

Consider the equilibrium condition for the asset market    StartFraction Upper M Over Upper P EndFraction equals Upper L (Upper

Y comma r plus pi Superscript e Baseline ). Using this​ condition, answer the following questions. A decrease in inflation ​expectations(pie​), with no change in​ output, real interest​ rate, or the money​ supply, will result in ▼ an increase no change a decrease in the price level. An increase in the nominal money supply ​(M​), with no change in​ output, real interest​ rate, or inflation​ expectations, will result in ▼ an increase no change a decrease in the price level. A decrease in output ​(Y​), with no change in the money​ supply, real interest​ rate, or inflation​ expectations, will result in ▼ an increase no change a decrease in the price level.
Business
1 answer:
Sophie [7]3 years ago
6 0

Answer:

a. A decrease in expectations with no change in output, real interest rate or the money supply will result in a decrease in the price level. This is because inflation expectation is directly related to the price level. A anticipated decrease in inflation in the future means that suppliers will reduce their prices as they want more of the product to be sold. With a decrease in inflation (in the future), the prices in the future are expected to fall further.

b. An increase in the nominal money supply, with no change in output, real interest rate or inflation expectations will result in an increase in the price level. Mathematically, this can be explained by RHS=LHS in the equation above. If everything on the right hand side (RHS) remains constant, it means the left hand side (LHS) = M/P must also remain constant, that is, an increase in M would lead to an increase in P so that the ration M/P does not change. An economic explanation of the same is that with an increase in money supply ceterus paribus, people would be willing to pay more as their income would increase.

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Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expend
salantis [7]

Answer:

$41,500

Explanation:

Calculation to determine What was the initial cost of the machine to be capitalized

Purchase price $35,000

Add Freight $1,500

Add Installation $3,000

Add Testing $2,000

Total Cost $41,500

Therefore the initial cost of the machine is $41,500

3 0
3 years ago
A market researcher divides the Dallas metropolitan area into blocks having roughly equal populations. He then selects a random
stira [4]

Answer: . two-stage area

Explanation:

In two-stage specimen sampling, a simple random sample of specimen is selected and then a simple random sample is selected from the units in each sampled specimen. Two-stage sampling is used when the sizes of the specimens are large, making it difficult or expensive to observe all the units inside them.

7 0
3 years ago
Read 2 more answers
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. Thi
Marina CMI [18]

Answer:

other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee. 

Explanation:

This question is incomplete. Please check the attached image for a complete question.

A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.

The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.

I hope my answer helps you

3 0
3 years ago
Select the best definition of labor productivity:
dimulka [17.4K]
<span>Labor productivity is the ability to earn the highest amount of profit for a company for an employees time. Such as a chef, cooking 10 meals in an hour will bring in 100 dollars for those 10 meals and only gets paid 10 dollars. His labor productivity is earning the company 90 dollars for his time.</span>
8 0
3 years ago
DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his compet
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Answer:

Programmed decisions.

Explanation:

Decision-making is a process of selection from a set of alternative courses of action,which is thought to fulfill the objectives of the decision problem more satisfactorily than others.

Decision making can be regarded as the cognitive process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice.

Types of Decision Making:

• PROGRAMMED DECISIONS : A programmed decision is one that is fairly structured or recurs with some frequency.

A decision that is repetitive and routine, in which a definite method for its solution can be established. Examples: pricing standard customer orders, determining billing dates, recording office supplies etc.

• NON-PROGRAMMED DECISIONS : Non-programmed decisions are relatively unstructured and may occurs much less often. They are made in response to situations that are unique, are poorly defined and largely unstructured.

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3 years ago
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