Answer:
1. Rise
2. Increasing
3. Rise
Explanation:
For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do, in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100. If the actual price level turns out to be 110, the firm's output prices will RISE, and the wages the firm pays its workers will remain fixed at the contracted level. The firm will respond to the unexpected increase in the price level by INCREASING the quantity of output it supplies. If many firms face similarly rigid wage contracts, the unexpected increase in the price level causes the quantity of output supplied to RISE above the natural level of output in the short run.
The above explanation is the reason why the aggregate supply curve slopes upward in the short run
Answer:
2560.50
Explanation:
For bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at 2%. Thus, the value of the bond can be determined as follows:
Years 1 2 3 4 5 Total
Principal 1,350 1,450 2,800
Interest 0 0 0 0 0 0
Total inflow 0 0 1,350 1,450 2,800
[email protected]% 0 0 0 1,247 1,313 2,561
Answer:
1) True
2) D. Total fixed costs
Explanation:
1) The manager's evaluation should be based on a flexible budget, so the statement is true.
The standard quantity of direct materials used should be based on actual production for a correct variance analysis.
2
) Total fixed costs remains the same when comparing a flexible budget to a master budget.
Total fixed costs do not change in total within relevant range of production.
Answer:
The value of the bond today is closest to $1648.85
Explanation:
The value of the bond today is closest to:
Present Value = FV / (1+i)^n
*m
FV= 2500
I = 4.25 = 0.0425
N= 5
M= 2
The value of the bond today = 2500 / (1+0.0425) ^5*2
The value of the bond today = 2500 / 1.516214468
The value of the bond today = 1648.853256
The value of the bond today = $1648.85
An example would be
The Cost of flour for a baker
