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3 years ago

Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.

Business

1 answer:

Strike441 [17]3 years ago

6 0

Answer:

high,high

not all prices adjust quickly

below

Explanation:

According to the sticky-wage theory, the economy is in a recession because the price level has declined so that real wages are too high, thus labor demand is too high.

Real wages decline as nominal wages are adjusted. As a result, the economy returns to full employment

According to the sticky-price theory, the economy is in a recession because not all prices adjust quickly.

As people observe the lower price level, the economy returns to the long-run aggregate supply curve.

According to the misperceptions theory, the economy is in a recession when the price level is below what was expected.

As people observe the lower price level, their expectations adjust.

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"Water and Power Co. is a small company and is considering a project that will require $650,000 in assets. The project will be f

musickatia [10]

Answer:

The answer is =16.7%

Explanation:

Earnings before interest and taxes(EBIT) = $145,000

Tax rate is 25%

Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%

So the Net income is 0.75 x $145,000

Net income = $108,750

The project is financed by 100percent equity and the cost is $650,000.

ROE(Return on Equity) = net income/equity

$108,750/$650,000

=16.7%

7 0

3 years ago

A new security system has a price-tag of $8,000, but should save your company $3,600 each year for the next 10 years in reduced

tensa zangetsu [6.8K]

If the required rate of return is 7.2%, no such security shall be purchased.

<h3>What does the required rate of return mean?</h3>

The required rate of return is the expected percentage of returns on investment at the time the investment is made. The required rate of return, in this case, is 7.2%.

The actual returns earned from purchasing the security for $8000 and receiving returns of $3600 are calculated to be around a 3.6% return.

As a result, if the required rate of return on investment is 7.2%, the security should not be purchased.

Read more about the required rate of return here:

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1 year ago

Scout Company sold $15.000 of merchandise in September with a three-month warranty. The cost to repair defects under warranty is

chubhunter [2.5K]

Answer: debit to Product Warranty Expense for $750

Explanation: 5% of $15000 =

5 ÷ 100 × $15000 is $750.

This is an expense and so will be a debit.

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2 years ago

Suzie Smith is a real estate sales associate. She is a top producer and likes to maintain her independence. She sets up her offi

Tems11 [23]

Answer:

Explanation:

Suzie's situation isn't workable because she is meant to be under the direct supervision of her broker no matter what her personal preference for independence.

This is because should anything go wrong in any of her dealings, the brokers's license will be revoked. This means that the broker is directly responsible and accountable for her actions and as such must ensure that she is present at the office at all times.

Cheers.

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3 years ago

What is Virgo sign means

atroni [7]

Answer: Virgo is an earth sign historically represented by the goddess of wheat and agriculture, an association that speaks to Virgo's deep-rooted presence in the material world. Virgos are logical, practical, and systematic in their approach to life. ... Virgo is governed by Mercury, the messenger planet of communication.

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2 years ago