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3 years ago

The term economic cycle refers to what? How does it impact a business?

Business

1 answer:

insens350 [35]3 years ago

8 0

Answer:

Refers to the oscillation of production

Explanation:

The term economic cycle refers to the movements of prosperity and decay in economic activity (GDP), that is, the alternations that occur between periods of growth and economic recession over time. Cycles affect business, because in a prosperous period the business environment generates higher returns, while in the recession phase it becomes unfavorable due to the unstable environment.

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North Company has completed all of its operating budgets. The sales budget for the year shows 50,820 units and total sales of $2

Grace [21]

Answer:

We are given all the details of the activity and the results of those activities, like the cost and revenue.

The multi step income statement shall be as follows:

Income:

Revenue from Sales = $2,391,000

Other Income = $0

Total Revenue = $2,391,000

Expenses:

Cost of goods sold = $1,168,860

$23 $\times$ 50,820

Selling and Administrative = $303,100

Interest Expense = $13,060

Total Expenses = $1,485,020

Net Income before Taxes = $905,980

Less: Taxes on income = $220,400

Income from Continuing Operations = $685,580

7 0

3 years ago

Suppose the economy starts off producing Natural Real GDP. Next, aggregate supply rises, ceteris paribus. As a result, the price

lord [1]

Answer:

The price level will be equal to what it was before there was a rise in the aggregate supply.

Explanation:

In economics, natural gross domestic product (Natural Real GDP) can be described as the maximum level of real GDP that can be sustained by an economy over the long term. The Natural Real GDP is also known as the potential output.

From the question, since the economy has moved back to producing Natural Real GDP which is the maximum real GDP sustainable, the price level will be equal to what it was before there was a rise in the aggregate supply.

Therefore, the price level will be equal to what it was before there was a rise in the aggregate supply.

8 0

3 years ago

The quantity demanded for cosmetic surgery increased by 12 percent following a period of strong economic growth that raised cons

xxMikexx [17]

Answer:

A normal good

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls. For normal goods, income and quantity demanded are positively correlated.

When income increased, the quantity demeaned for cosmetic surgery also increased. So, this is a normal good

7 0

3 years ago

Suppose you invest $1000 at an interest rate of 6%, compounded annually. Calculate the equivalent interest rate under continuous

Vikki [24]

Answer:

The equivalent interest rate under continuous compounding is 5.8%

Explanation:

Annual compounding

A = P(1+r)^n

P = $1,000

r = 6% = 0.06

n = 1 year

A = 1000(1+0.06)^1 = 1000(1.06) = $1060

Continuous compounding

A = Pe^rt

A = $1060

P = $1000

t = 1 year

1060 = 1000e^r

e^r = 1060/1000 = 1.06

e^r = 1.06

r = ln 1.06 = 0.058 = 5.8%

8 0

3 years ago

You have taken out a $350,000, 3/1 ARM. The initial rate of 6.0% (annual) is locked in for 3 years. Calculate the outstanding ba

Vilka [71]

Answer:

Explanation:

The Monthly Payment = Loan Amount / PVAF (360,0.50%)

The Monthly Payment = 350000 / 166.7916

The Monthly Payment = $2098.43

Loan Balance after 3 years = PV(0.50%,324,-2098.43) = $336294.2

5 0

4 years ago