1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexandr402 [8]
3 years ago
14

13) Suppose that there is a positive aggregate demand shock and the central bank commits to an inflation rate target. If the com

mitment is credible, then A) the short-run aggregate supply curve will not shift. B) the public's expected inflation will remain unchanged. C) over time inflation will fall back down to the inflation target. D) all of the above. E) both A and B.
Business
1 answer:
AveGali [126]3 years ago
7 0

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>

You might be interested in
What is new marketing ?
Talja [164]

Answer:

New media marketing centers on promoting brands and selling products and services through established and emerging online channels, harnessing these elements of new media to engage potential and current customers.

Explanation:

7 0
3 years ago
Tanning Company analyzes its receivables to estimate bad debt expense The accounts receivable balance is $300 000 and credit sal
pentagon [3]

Answer: Bad Debt Expense 28,000 Allowance for Doubtful Accounts 28,000

Explanation:

Account receivable = 300,000

Percentage uncollectible = 10%

Current balance = 2000

Adjustment to allowance for uncollectible accounts is given by :

(Account receivable ×percentage uncollectible) - current balance

(300,000 × 10%) - 2000

(300,000 × 0.1) × 2000

30,000 - 2000 = 28,000

Therefore, adjustment should be :

bad debt expense debit 28,000

allowance for doubful account credit 28,000

6 0
4 years ago
While any given advertisement for a product may focus on only one or a few purchasing motives, the _____. advertising campaign s
Lerok [7]
I think the correct answer would be <span>advertising campaign needs to cover all the important purchase motives of the target market. The advertising campaign should target all of the possible motives. Hope this answers the question. Have a nice day.</span>
3 0
3 years ago
Read 2 more answers
Several years ago the jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon tha
Triss [41]
<span>If several years ago, the Jakob company sold a $1,000 par value bond that now has 20 years to maturity and a 7.00% annual coupon that is paid semiannually, then the after-tax cost of debt of the firm will be 4.65%.</span>
8 0
4 years ago
Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doc
Katarina [22]

Answer:

$300

Explanation:

Given that s a health insurance program with co-payments of $10 per doctor visit.

Thus,

amount paid by insurance in 1 visit = $10

Amount paid by insurance in 6 visit = $10*6 = $60

Total bill charged by the doctor in 6 visit = 360

Amount paid by the consumer = Total bill charged by the doctor in 6 visit - Amount paid by consumer in 6 visit = $360 - $60 = $300

Since , consumer is the third party payer he pays $300 out of total $360 bill charged by the doctor.

In fraction ,portion of bill paid by the third party payer = 300/360 = 5/6

Thus, 5/6 portion of bill is paid by third party payer.

3 0
3 years ago
Other questions:
  • As a college senior, mason researched many companies before deciding on those he wanted to apply to. he searched particularly fo
    12·1 answer
  • Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment.
    5·1 answer
  • Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor
    8·1 answer
  • Differentiate among the following.
    14·1 answer
  • An economic model is a
    12·1 answer
  • Employers must send the
    10·1 answer
  • The appropriate discount rate for the following cash flows is 7.38 percent per year.
    6·1 answer
  • French mining engineer Henri Fayol defined management as a process involving which of the following?
    10·2 answers
  • explain the roles of directors of the company and the roles of auditors using the categories provided explain in three points ex
    15·1 answer
  • Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!