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Studentka2010 [4]
3 years ago
10

If a Phillips curve shows that unemployment is high and inflation is low in the economy, then that economy:

Business
1 answer:
Rasek [7]3 years ago
4 0

Answer:

is producing at a point where output is less than potential GDP.

Explanation:

When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.

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Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the
KATRIN_1 [288]

Answer:

Cost of Equity  16.33%

Explanation:

We solve for this using CAMP:

Ke= r_f + \beta (r_m-r_f)

risk free = 0.0387

premium market = (market rate - risk free) 0.0903

beta(non diversifiable risk) = 1.38

Ke= 0.0387 + 1.38 (0.0903)

Ke 0.16331 = 16.33%

We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.

8 0
3 years ago
When should supplies be recorded as an expense?
Crazy boy [7]

Answer:

Supplies should be recorded as an expense when it is used up during an accounting period.

Explanation:

Supplies which is also refers to as office supplies can be described as consumables and equipment which are used from time to time by company. Examples of office supplies include printer paper, pencils, notebooks, binders, pens and among others.

When supplies are bought before they are used, they are recorded as office supplies by adding them to office supplies on hand at the beginning of to obtain total supplies for an accounting period under the current asset in the balance sheet. Any part of the office supplies used up during an accounting period is recorded an expense during that accounting period in the income statement. The part used is deducted from the total supplies obtained supplies on hand at the an accounting period to be recorded under the current asset in the balance sheet.

Therefore, supplies should be recorded as an expense when it is used up during an accounting period.

7 0
3 years ago
Which of the following is an example of institutional advertising?
timofeeve [1]

Answer:

B

Explanation:

Institutional advertising is when your trying to promote a company and not just a product. In example A it is promoting a hand cream. In example C it is promoting a grass seed. and in example D is is promoting the model with more power. Although in example B it gives out the key word Our products meaning that it is talking about the company's products/ company. Thus based on the definition it is B.

6 0
3 years ago
Read 2 more answers
You are planning a trip to the United Kingdom and expect that you will spend 2,200 pounds. How much will your spending be in U.S
ValentinkaMS [17]

Answer: $3,026.55

Explanation:

If US$1 is to £0.7269 then that means that the pound is stronger than the dollar because a dollar buys less than a pound in which case £2,200 will be more than $2,200.

It will be;

= 2,200/0.7269

= $3,026.55

<em>Options seem to be for a variant of this question. </em>

6 0
3 years ago
According to the​ Break-Even EBIT​ analysis, shareholders are​ ____ off with debt when EBIT is​ _____ the​ Break-Even EBIT level
Kobotan [32]

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

3 0
3 years ago
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