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3 years ago

In each of the following cases, determine how much GDP and each of its components is affected, if at all:

Business

1 answer:

Elanso [62]3 years ago

5 0

Answer:

Follows are the solution to this question:

Explanation:

In option A, Its increase in consumption and GDP is $200.

In option B, Investment decisions increase about $1800, net exports drop by $1800 and therefore GDP should remain constant.

In option C, GDP or investment wasn’t increasing only at present because estimates were produced last year.

In option D, Market growth is $470 million, options trading is rising by $30 million but GDP is growing by $500 million.

GDP is just a misleading indicator, it does not take into account recreation, environmental protection, education and health rates, non-market behaviors, changes in wealth disparity, increases of variety or rises in innovation. HDI's social progress Index could be used to highlight a need for people or their ability to assess national growth as the supreme requirement.

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Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The follo

RUDIKE [14]

Answer:

The correct option is C,$2.25 and $0.00.

Explanation:

The annual preferred shares dividends=20,000*$100*2%=$40,000

In the first year ,dividends of $10,000 paid would go to preferred stockholders while the common stockholders receive nothing.

In the second year,it is imperative to note that the balance of unpaid preferred stock dividends of $30,000 ($40,000-$10,000) would be paid alongside this year preferred dividends.

preferred stock dividends=$30,000+$40,000

However the $45,000 paid is not enough to settle the preferred stockholders,again,the total dividends of $45,000 would be paid to preferred stockholders

preferred stock dividend per share=$45,000/20,000=$2.25

common stock dividend per share is $0

Option C is the correct answer.

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3 years ago

Despite ongoing debates about the appropriateness of macroeconomic policies, many macroeconomists have reached a modern consensu

ser-zykov [4K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

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3 years ago

Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of

balandron [24]

Answer:

a) The demand curve for unskilled labor is vertical.

Explanation:

Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the Group of answer choices demand curve for unskilled labor is vertical.

Response to prices depend on the elasticity of demand because elasticity of demand relates to how quantity demanded will fall as a result of increase in price or in this case wage rate.

A vertical demand curve is a pictorial demonstration of a perfectly inelastic demand which means that no matter how much to you increase the price no change will occur in quantity demanded as such a good is most essential to the consumers.

Therefore if the demand for labor is perfectly inelastic, it means nobody will be laid off with increase in wage rate as firms will not change their quantity demanded for labor.

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3 years ago

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What is accounting theory

Gemiola [76]

Answer:

a set of assumption framework and methodologies used in the study of application of financial reporting principles

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3 years ago

a type of long term permanent financing for residential construction or large construction projects, that replaces the construct

shepuryov [24]

A type of long term permanent financing for residential construction or large construction projects, that replaces the construction loan is called a takeout loan.

<h3>What is a takeout loan?</h3>

A takeout loan is a method of financing whereby a loan that is procured later is used to replace the initial loan.

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To learn more about take-out loan, refer

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1 year ago