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alexgriva [62]
3 years ago
8

A country in South America is experiencing high inflation, around 15% annually, and high unemployment, around 25%. According to

the AD/AS model, which of the following is most likely to explain this outcome?
a. A positive real shock
b. A positive aggregate demand shock
c. A negative aggregate demand shock
d. A negative real shock
Business
1 answer:
Assoli18 [71]3 years ago
5 0

Answer:

The correct answer is the option D: A negative real shock

Explanation:

To begin with, in the case presented where the economy has suffered from high inflation and unemployment rates then the most likely situation that could have happened before to explain this outcome is that the country and its economy were harmed badly by a negative real shock. This tend to happen when the aggregate supply is low and this one tends to decline rapidly affecting the economy in its whole due to the fact that the sellers are now producing less of the products and services and therefore the consumption and the real GDP decreases dramastically.

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In preparation for introducing a new doll to the market, a toy company advertises and creates so much demand that little girls a
maxonik [38]

Answer:

Price Skimming

Explanation:

Price skimming is one kind of price-setting strategy where marketers set a relatively higher price when the product launch initially in the market. Generally, the producer sets a higher price rather than it should prevail in the market, and later on, the price goes down due to lower demand. Price skimming strategy only applicable to a new product that is about to launch in the market. It is generally done by fancy advertising of the product.

3 0
3 years ago
Select the correct answers. At which stage of the product life cycle does a product reach its peak in terms of sales and profits
Ostrovityanka [42]

Answer:

D. maturity

Explanation:

A product life cycle is divided into four, namely, introduction,  growth, maturity, and decline. The concept of the product life's cycle is used as a decision-making tool to help management know when to expand to new markets, increase advertising, adjust prices, or redesign a product.

The maturity cycle is the third stage of a product life cycle. At this stage, sales revenues and sale volume reach the peak. The market get saturated with very few new customers. The product growth becomes stagnant. Profits may begin to decline at this stage.

3 0
2 years ago
Dairy Farm enters into a contract with EZ Serve Ice Cream Company to supply milk. Later, Dairy decides that it is no longer adva
andrew-mc [135]

Answer:

C

Explanation:

<em>A breach of contract occurs when one of the parties to a contract decides not to honor all or some of the terms spelled out in the contract. In other words, a breach of contract occurs when actionable terms in the contract are neglected by one of the parties to the contract.</em>

The actionable term in the contract signed by both Diary Farm and EZ Serve Ice Cream Company is for Diary Farm to supply milk to EZ Serve Ice Cream Company. <u>Hence, not supplying milk as agreed represents a breach of the contract, all other things being equal.</u>

Correct option: C

3 0
3 years ago
Enrique is giving a presentation to convince his managers that offering yoga classes at work will improve productivity because i
Ilya [14]

Answer:

a) He will ask the audience to stand and do a simple yoga pose.

Explanation:

Base on the scenario been described in the question, we saw the Enrique is given a presentation to convince his managers that offering yoga classes at work will improve productivity because it will help employees clear their minds. The aspects of his presentation that shows he wants to include kinesthetic learners is , he asked the audience to stand up and do a simple yoga pose.

Kinesthetic learning is a learning style in which learning which involves the students doing physical activities, rather than watching demonstrations or listening to lectures.

3 0
3 years ago
Read 2 more answers
BC 'n D just paid its annual dividend of $.60 a share. The projected dividends for the next five years are $.30, $.50, $.75, $1.
Lemur [1.5K]

Answer:

$7.60

Explanation:

Find PV dividend per year at 14% discount rate;

0.30 / 1.14 = 0.2632

0.50 / 1.14² = 0.3847

0.75 / 1.14³ = 0.5062

1 / (1.14^4) = 0.5921

1.20 / (1.14^5) = 0.6232

Find the PV of the terminal cashflow;PV = \frac{\frac{1.40}{0.14} }{(1.14)^{5} }  = 5.2308

Next, sum up the PVs to find the price of the stock today;

Price = 0.2632 + 0.3847 + 0.5062 + 0.5921 + 0.6232 + 5.2308

= $7.60

6 0
3 years ago
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