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Ivenika [448]
3 years ago
6

The natural rate of unemployment is 4%, and the economy is producing 95% of its potential output. Okun's law predicts an unemplo

yment rate of _____%.
A. 4
B. 5
C. 6.5
D. 9
Business
1 answer:
Anon25 [30]3 years ago
6 0

Answer:

so correct option is C. 6.5

Explanation:

given data

natural rate of unemployment = 4%

economy producing = 95%

solution

we know here as  Okun's law for the every 1 percentage increase in unemployment rate

GDP of country =  2% lower than potential GDP

but here is country GDP = 5% lower than potential GDP

so there is increase in the unemployment rate = 5% ÷ 2 =  2.5%  

and unemployment rate is given =  4%

so effective unemployment rate will be

effective unemployment rate = 4% + 2.5%

effective unemployment rate = 6.5%

so correct option is C. 6.5

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Explanation:

Lack of entrepreneurs will lead to lower jobs, innovative products and a decline in economy. By developing new technology, goods, and services, entrepreneurs help to fuel the economic growth.

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3 years ago
Michael's Machine Shop reports the following information for the quarter.
Mandarinka [93]

Answer:

a. $26

b. $23

c. $34

d. $29

e. $21

f.  $11

g. $14

h. $11

Explanation:

a. Variable cost per unit.

Variable cost per unit = Variable Manufacturing Costs + Variable Non - Manufacturing Costs

                                    = $12 + $9 + $2 + $3

                                    = $26

b. Variable production cost per unit.

Variable production cost per unit = Variable Manufacturing Cost

                                                       = $12 + $9 + $2

                                                       = $23

c. Full cost per unit.

Full cost per unit = Manufacturing and Non - Manufacturing (Variable and Fixed)

                            = $12 + $9 + $2 + $3 + $47,500/23,750 units + $142,500/23,750 units

                            = $12 + $9 + $2 + $3 + $2 + $6

                            = $34

d. Full absorption cost per unit.

Full absorption cost per unit = Variable Manufacturing Costs + Fixed Manufacturing Costs

                                                = $12 + $9 + $2 + $6

                                                = $29

e. Prime cost per unit.

Prime cost per unit = Direct Manufacturing Costs'

                                = $12 + $ 9

                                = $ 21

f. Conversion cost per unit.

Conversion cost per unit = Direct Labor Costs + Overheads Costs

                                         = $9 + $2

                                         = $11

g. Contribution margin per unit.

Contribution margin per unit = Sales - Variable Costs

                                                = $ 40 - $26

                                                = $ 14

h. Gross margin per unit.

Gross margin per unit = Sales - Full absorption cost per unit

                                     = $40 - $29

                                     = $11

3 0
3 years ago
A start-up company has developed some innovative products, but it has no marketing or advertising expertise. It hired The Tullen
rewona [7]

The Tullen Group is an example of a marketing intermediary as it is hired to design an advertising campaign that includes creating a web presence.

<h3>What is a marketing intermediary?</h3>

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A typical example of a marketing intermediary includes:

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Also, these intermediary also functions as a link between manufacturers and customers in the distribution of products.

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8 0
2 years ago
Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary pol
stich3 [128]

Answer:

left as well as the contractionary monetary policy, then bring about the

increase of interest rate as well as reducing equilibrium quantity of money.

Explanation:

Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.

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When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
aleksley [76]

Answer:

correct answer is Option D

Explanation:

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The quantity would be changed infinitely with a samll change in the the price. It means that demand is perfectly elastic and the curve is horizontal as the small change up decreases the quantity to zero and small change down increases the quantity infinity. Thus, option D is the correct ams of this questionwer

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3 years ago
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