This is True that In the United States, inflation reached double-digit rates in the 1970s and early 1980s but has since declined and recently, has been relatively mild.
<h3>What is inflation?</h3>
A general increase in the cost of goods and services is referred to as inflation. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
When prices for goods and services increase rapidly, there is rapid inflation, which reduces the purchasing power of savings. Oil prices, currency speculators, rapacious businesspeople, and avaricious union leaders were held responsible for The Great Inflation.
Numerous businesses were destroyed and countless people were harmed by the Great Inflation and the recession that followed.
Cause for the decline in inflation:
- Reduced government spending,
- Stock market declines,
- Consumer desire to save more money,
- Tighter monetary regulations
When the economy's output expands more quickly than the amount of available credit and money, falling prices can also occur spontaneously
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Answer:
Financial economies of scale are a type of internal economy of scale. They are economies of scale enable more favourable rates of borrowing. That is, larger businesses are seen by lenders as more reliable or worthy of credit due to their size, whereas smaller businesses will tend to pay higher rates of interest.
Answer
A. MRP = Change in revenue / Change in Labor
For first worker = 60 + 59 + 58 + 57 + 56 = 290/1 = $290
Since he produces 5 units.
Second Worker = 55 + 54 + 53 + 52 = 216/1 = $174
Since he produces 4.
Similarly,
Third worker = 51 + 50 + 49 = $150
Fourth worker = 48 + 47 = $95
Fifth worker = $46
B. Now all units are charged at $50
First worker = 5*50 = $250
Second = 4*50 = $200
third = 3*50 = $150
and so on.
C. If the wage is $210 it will demand workers until the MRP decreases below 210 and that happens for worker 2 here.
Since he can produce only $200 for $210 wage, he should not be hired. Hence only one worker will be hired here
D. If the wage falls to $97 the demand for workers will increase, again for worker 4 MRP is $100 which is above $97 and worker 5 goes below.
Answer:
a. 9,000; 10,000
Explanation:
The computation is shown below:
The money multiplier is
= 1 ÷ 0.10
= 10
Now If $1,000 are deposited in banks and the expected reserve ratio is 0.10 ration so the lending amount is $900.
And now if we considered the money multiplier, so it would be increased by
= $900 × $10
= $9,000
And, the increase in money supply is
= $9,000 + $1,000
= $10,000
Hence, the correct option is a.
The answer is: Car manufacturers
An industry that have high fixed costs in the short run would be the industry that has to put a high price tag for their products.
Car manufacturers need to provide a high number of capital on the early stage of investments to purchase machines and factory spaces that essential for the efficiency of the production. Due to this hard requirements, there is very little new company enter the competition in car manufacture industries in recent centuries.
