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jolli1 [7]
3 years ago
13

Which of the following factors could cause the economy to experience​ supply-side inflation? A. Increased security about jobs an

d future income. B. The development of new technology to increase productivity. C. Government laws which say that the average work week must be reduced by one hour every year. D. Increases in the number of immigrants allowed into the country.
Business
1 answer:
Dovator [93]3 years ago
3 0

Answer:

C. Government laws which say that the average work week must be reduced by one hour every year.

Explanation:

Supply side inflation or cost push inflation occurs when an input into the production process increases in value due to scarcity. It occurs when there is higher cost of production, resulting in decreased aggregate supply.

A reduction in the hours of service provided by labour will lead to scarcity, this will cause an increase in the price of labour. Since labour is a major input in production, increased cost of labour will reduce aggregate supply. This is supply side inflation.

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3 years ago
Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2019. Data on these property dispositions are as follows
loris [4]

Answer:

Machine #1 - $7,000, gain

Machine #2 - $3,000, loss

Machine #3 - $2,000, gain

Explanation:

Given;

<u>Machine #1</u>

Asset Cost = $85,000

Acquired Depreciation = $32,000

Sales price = $60,000

From the above information, the book value of machine #1

= $85,000 - $32,000

= $53,000

Gain/(loss) on disposal = $60,000 - $53,000

                                      = $7,000

A gain of $7,000 on disposal.

<u>Machine #2</u>

Asset Cost = $30,000

Acquired Depreciation = $12,000

Sales price = $15,000

From the above information, the book value of machine #2

= $30,000 - $12,000

= $18,000

Gain/(loss) on disposal = $15,000 - $18,000

                                      = ($3,000)

A loss of $3,000 on disposal

<u>Machine #3</u>

Asset Cost = $77,000

Acquired Depreciation = $28,000

Sales price = $51,000

From the above information, the book value of machine #1

= $77,000 - $28,000

= $49,000

Gain/(loss) on disposal = $51,000 - $49,000

                                      = $2,000

A gain of $2,000 on disposal.

4 0
3 years ago
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