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Mila [183]
3 years ago
14

IE 8-2 ... AS/AD Model – Suppose this economy was initially at Full Employment, but then experienced two large LEFT shifts of

AD. If the Price Level declines to $1.90, then Real Production GDP will have fallen to $4000 b and ______ people will have lost their jobs. In the Business Cycle the economy will have moved from Point "x" to Point _________ ..
Business
1 answer:
Galina-37 [17]3 years ago
6 0

Answer:

10 million people. Point "t".

Explanation:

This analysis can simply be referred to as a severe recession which is also known as depression. It is defined as a condition whereby Gross Domestic Product is down by approximately 10% and there is about three to four years recession. Based on the above definition and the analysis given in the question, the situation is similar to a depression. Thus, the number of people that would have lost their jobs is 10 million and there is an adjustment from the "x" to "t".

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The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
Digiron [165]

Answer:

a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

Explanation:

To calculate the rate of inflation/deflation, we have to divide by the oldest price index.

The second year, the variation of the price index was:

\Delta PI/PI=\frac{PI_2-PI_1}{PI_1}=\frac{100-110}{110}=\frac{-10}{110}=-0.909=-9.1\%

This means a 9.1% deflation.

The third year, the variation of the price index was:

\Delta PI/PI=\frac{PI_3-PI_2}{PI_2}=\frac{96-100}{100}=\frac{-4}{100}=-0.04=-4\%

This means a 4% deflation.

8 0
3 years ago
Corporate social responsibility (csr) means that a corporation should:
postnew [5]
<span>Corporate Social Responsibility (CSR) can be described as an approach of business that contributes to continuous development of business by providing/delivering economic, environmental and social benefits to all the stakeholders of the company. CSR means that a corporation should take accountability of its actions on people, community and the environment in which it exists.</span>
6 0
2 years ago
Jake nickells crowdsourcing approach to his business initially kept the business finances under control in all of the following
svetlana [45]

Answer:

It eliminated the need for fixed costs.

Explanation:

3 0
2 years ago
A fixed input, X, and a variable input, Y, are used to produce good A. If the marginal physical product (MPP) of Y is constant,
butalik [34]

Answer:

umm........i think its A..............

Explanation:

5 0
3 years ago
We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following
mixer [17]

Answer:

The answer is "0.85 "

Explanation:

In order to locate a beta of the company, we must find the average beta of unlevered UPS and FedEx and find a levered beta of the company.

      Price   Outstanding shares(Billion)  Market valu of equity(Billion)  Market value of debt(billions)     D/E Ratio

UPS       65                      0.7                   45.5                    5                   0.1099

FedEx    55                   0.25               13.75                        3                   0.2182

Unlevered \ beta= \frac{levered \ beta}{(1+((1- tax rate)\times(\frac{Debt}{Equity})))}

taxes desn't matter , given in the question so, assumed to be 0

   Unlevered \ beta \ for \ UPS= \frac{0.8}{1+(1-0)\times (0.1099)}

                                            = \frac{0.8}{1+(1)\times (0.1099)}\\\\= \frac{0.8}{1+(0.1099)}\\\\= \frac{0.8}{1.1099}\\\\=0.72

Unlevered \ beta \ for \ FedEx= \frac{1.1}{1+(1-0)\times (0.2182)}

                                            = \frac{1.1}{1+(1)\times (0.2182)}\\\\= \frac{1.1}{1+(0.2182)}\\\\= \frac{1.1}{1.2182}\\\\=0.90

Average \ Unlevered \ beta = \frac{0.72+0.90}{2}

                                       = \frac{1.62}{2}\\\\=0.81

\text{levered beta  of  the delivery service firm }= unlevered \ beta \times(1+(1-taxes) \times (\frac{debt}{equity}))

                                                              = 0.81 \times (1+(1-0)\times (\frac{20}{450})\\\\= 0.81 \times (1+(1)\times (0.04)\\\\= 0.81 \times (1+(0.04)\\\\= 0.81 \times (1.04)\\\\=0.85

4 0
3 years ago
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