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myrzilka [38]
4 years ago
11

Wage and price stickiness Select one: a. gives rise to a vertical long-run aggregate supply curve. b. gives rise to a vertical s

hort-run aggregate supply curve. c. creates a surplus or a shortage of real GDP. d. prevents the economy from producing its potential level of real GDP.
Business
1 answer:
Tresset [83]4 years ago
5 0

Answer:

d. prevents the economy from producing its potential level of real GDP.

Explanation:

Price-stickiness or Wage-stickiness, is a term that describes a condition in which a nominal price or wage is resistant to change. Often referred to as Nominal Rigidity, this occurs when a price or wage is fixed in nominal terms for a given period of time.

In other words, Price stickiness or Wage Stickiness occurs when workers' earnings or price don't adjust quickly to changes in labor market conditions, thereby creating sustained periods of shortage or surplus.

Hence, Price and Wage stickiness prevent the economy from achieving its natural level of employment and its potential output, which in turn prevents the economy from producing its potential level of real GDP.

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You are the purchasing manager and you buy a raw material having the following information: Annual demand = 900 units Fixed orde
alex41 [277]

Answer:

=2983.25

Explanation:

In calculating the inventory on raw materials you will have to Add together the original value of raw materials, the works in progress if any and finished goods to get starting total inventory.

The solution to the question can be calculated like this:

EOQ=\sqrt{2* 900 * 100/2.5}

EOQ=268.328

EOQ+SAFETY STOCK=268.328+30

=298.325

VALUE=298.325*10

=2983.25

7 0
4 years ago
Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts
alexandr1967 [171]
I it’s think yes! Good luck!! :)
4 0
3 years ago
The internal rate of return (IRR): I. rule states that a typical investment project with an IRR that is less than the required r
Ierofanga [76]

Answer:

II, III, and IV only

Explanation:

The first statement is wrong. IRR is the rate that causes the net present value of a projects cash-flows to exactly equal zero, and therefore a project with a required rate of return higher than the IRR would mean that the cash-flows have to be discounted by a higher rate, which would yield a negative net present value. Such a project would reduce shareholder wealth and should be rejected. The other 3 statements are correct.

3 0
4 years ago
A company’s investment bankers say that a proposed new issue of 7.5 percent cumulative preferred stock with a par value of $10 a
Nookie1986 [14]

Answer:

The Answer is as follows;

Explanation:

Dividend on preferred stocks=$10*7.5%=$.075

Transaction Costs=$1

Total financing Cost=$1.75

Which is 17.5% (1.75/10)

The market price is not relevant for company's cost of financing. Therefore we have taken dividend payable on face value and transaction costs of issue for purpose of determination of financing cost.

8 0
4 years ago
Vanessa owns a music company and has been storing a wealth of information ranging from customer contact information to the names
Keith_Richards [23]

Interactivity  of a marketing decision support system is represented in the given example.

<u> Explanation :</u>

While analysing the market demands, they need a system which can produce data in an interactive way. This kind of system only helps the above mentioned type of company.

Actually to support her business venture she has implemented the MDSS that is marketing decision support system. This is a computerised support system where it stores all the customers’ data and areas of interest of the customers and it also tracks the purchases they have made.

To analyse the future requirement and to satisfy the customer demands the MDSS has an interactive way of obtaining information to fulfil the company’s aspiration.

6 0
3 years ago
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