Answer:
C) over time inflation will fall back down to the inflation target.
Explanation:
In the scenario, there is a positive aggregate demand shock which will lead to inflation because prices of goods will rise as aggregate demand increases with supply being unchanged
<u>A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. </u>
<u>Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.</u>
Answer: Costs of units started and completed: you will take the equivalent units calculated for units started and completed x the cost per equivalent unit for materials, labor and overhead (or conversion). The sum of these 3 will be the cost of units completed and transferred which is also known as cost of goods manufactured
Explanation:
Answer:B. $700 of new reserves.
Explanation: Reserve ratio is the percentages of bank deposits which commercial banks must keep with them and not lend out, this is done by central bank in order to control inflation, interest rates etc
In ordinary terms reserve ratio is the percentage amount that is kept aside for future endeavours. Reserve ratio is very good to protect an organisation or a country during trying times.
A higher reserve ratio will reduce money lending rate and make commercial banks have less amounts to lend out.
If the reserve ratio is 12.5%, the dollar value of the amount that can be reserved from $5600.
The formula is as follows,the reserve ratio divided by one hundred multiplied by the amount. The reserve in Dollar value will be
Equal to (12.5%/100)*$5600= $700.
Answer:
b) 34,500 Regular units and 69,000 Ultra units
Explanation:
The computation of the firm break even point in units for Regular and Ultra is shown below:
Weighted average contribution margin per unit is
= (19 × 1 ÷ 3 + 23 × 2 ÷ 3)
= 21.6666 per unit
Now Break even point unit is
= 2242500 ÷ 21.666
= 103500 unit
Now
Regular = 103500 ÷ 3 = 34500
And Ultra = 103500 - 34500 = 69000
So the correct option is b
Answer:
True
Explanation:
A product that has common appeal in different cultures around the world would indeed require engaging in promotion. Why? Because each culture may have unique consumer behaviors.
For example, a popular product like Coke that has common appeal in different cultures around the world often engages in promotion in order to still keep existing customers and to acquire new ones because of the presence of other competitors.
