1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
8090 [49]
3 years ago
11

Why are the real income levels of Americans affected by rising prices?

Business
1 answer:
Nat2105 [25]3 years ago
4 0

"Real Wages" are wages that are adjusted for inflation and rising prices. As prices rise, people are able to buy less and less with their "nominal" (aka un-adjusted)  wages.

One example is gas for your car. If you make $1000 a month and gas goes up from $2.50 to $3, your un-adjusted wages stay the same (you still make $1000) but you can't buy as much of other things because your "real" wages have effectively gone down due to the price increase of gas.

You might be interested in
You have a portfolio that is invested 11 percent in Stock R, 56 percent in Stock S, and the remainder in Stock T. The beta of St
Kruka [31]

Answer:

The beta of stock T is 1.82

Explanation:

The portfolio beta is made up of the weighted average of the individual stock betas in the portfolio.

The formula for portfolio beta is,

Portfolio beta = wA * beta of A + wB * beta of B + ... + wX * beta of X

The weight of stock T in the portfolio is = 1 - (0.11 + 0.56)   = 0.33 or 33%

Let beta of Stock T be x. The beta of Stock T is:

1.47 = 0.11 * 0.84  +  0.56 * 1.39  +  0.33 * x

1.47 = 0.0924 + 0.7784 + 0.33x

1.47 - 0.0924 - 0.7784 = 0.33x

0.5992 / 0.33 = x

x = 1.815 rounded off to 1.82

3 0
3 years ago
Read 2 more answers
ncreased government spending spurs a short-run expansion. Over time, aggregate supply eventually __________, returning the econo
Natasha2012 [34]

If increased government spending spurs a short-run expansion. The statement that complete the gap is:<u> Shifts to the left</u>, <u>Output endresources.</u>

<h3>What is aggregate supply?</h3>

Aggregate supply can be defined as the overall amount of goods and service  that a firm intend to produce and supply at a point in  time or at a particular period of time.

If an increase in government spending lead to short run expansion this means that there will be shift in  aggregate supply of goods and service as aggregate supply will tend to shift to the left.


Therefore the statement that complete the gap is:<u> Shifts to the left</u>, <u>Output endresources.</u>

Learn more about aggregate supply here:brainly.com/question/19802257

#SPJ1

7 0
1 year ago
When you finance a car,the car then becomes __ for th loan.
matrenka [14]
The best answer to the question that is being presented above would be collateral. When you finance a car, the car then becomes the collateral or the pledge of the property for the loan. This is so that the payment system is attained securely and to avoid escaping from due payment.
4 0
3 years ago
Read 2 more answers
Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be low
Alla [95]

Answer:

1) False

when the inflation is lower than expected, the real interest rate will be higher, since

real interest rate = Nominal interest rate - inflation.

2) Gains

In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.

3) Loses

In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.

6 0
2 years ago
Read 2 more answers
The more frequent daily activities of financial management include:
Lady bird [3.3K]

Answer:

  1. credit management
  2. receipt and disbursement of funds​
  3. inventory control

Explanation:

Activities such as stablishing budgets and plans are done once every year. And the sale of stocks and bonds is done only if the company makes and IPO or an emission of Bonds which are impossible to occur daily.

7 0
2 years ago
Other questions:
  • Refer to scenario 1.3. which environmental factor is exemplified by the customer trend that consumers were no longer willing to
    8·1 answer
  • Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication
    11·2 answers
  • What is the National Labor Relations Board responsible for?
    9·1 answer
  • Marvin loves chocolate truffles. as the price of a chocolate truffle increases from $1 to $2 to $3, marvin continues to buy a do
    9·1 answer
  • ______is the difference between the early start and the late start days for a given
    13·1 answer
  • All of the following describe a balance sheet except which one? A. The balance sheet reflects the results of multiple transactio
    15·1 answer
  • If the level of advertising expenditures is compared to the number of units sold at the end of a four-month period, the independ
    8·1 answer
  • Alexander has been accepted as a freshman at a college two hundred miles from his home for the fall semester. Alexander's wealth
    11·1 answer
  • Which is an example of qualitative investment research?
    14·1 answer
  • To use the _____ method, a company must maintain records of inventory and purchases at cost and at current selling price.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!