All categories

3 years ago

Expectations of inflation are always greater than actual inflation along the long-run Phillips Curve.

Business

1 answer:

lawyer [7]3 years ago

8 0

Answer:

True.

Explanation:

The statement is “True” because the Philip curve is the curve that exhibits the relationship between the inflation or price level and unemployment. If inflation rises, then unemployment falls. If inflation falls, then unemployment rises. This happens because there is a negative relationship between inflation and unemployment. However in the long run the Philip curve is a verticle line parallel to the inflation axis and that shows there is no trade-off. Thus the option A is correct.

You might be interested in

Global Services is considering a promotional campaign that will increase annual credit sales by $570,000. The company will requi

klasskru [66]

Answer:

The investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios would be the following:

Accounts receivable is $190,000

Inventory is $95,000

Plant and equipment is $570,000

The Total would be of $855,000

Explanation:

According to the given data we have the following:

Global Services is considering a promotional campaign that will increase annual credit sales by $570,000.

Therefore, in order to calculate the the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios we would have to make the following calculations:

Accounts receivable=$570,000/3=$190,000

Inventory=$570,000/6=$95,000

Plant and equipment=570,000/1=$570,000

Therefore, the Total would be of $855,000

6 0

2 years ago

Johnson Enterprises intends to make a dividend payment of $3.25 per share next year. After this dividend payment, the firm is co

vladimir1956 [14]

Answer:

I would be willing to pay $ 32.83 for each share of Johnson Enterprises

Explanation:

The price per share= next year dividend/required rate of return-growth rate

next year dividend is $3.25

required rate of return is 15%

dividend growth rate in perpetuity is 5.1%

share price=$3.25/(15%-5.1%)

share price =$3.25/9.9%

share price=$3.25/0.099

share price=$ 32.83

The share can be sold today for $ 32.83 ,which is the present value of dividends payable in perpetuity(forever)

6 0

2 years ago

A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they

Zigmanuir [339]

Answer: 2.75 blankets.

Explanation:

The opportunity cost is the value of a good that is sacrificed by choosing some other alternative. So, there are certain costs associated with the consumption of some goods.

In our case,

Opportunity cost of producing 1 shirt = $\frac{810}{294}$

= 2.75 blankets

Opportunity cost of producing 1 shirt is 2.75 blankets which means that 2.75 blankets have to be foregone to produce 1 shirt.

7 0

3 years ago

Molave Furniture Company plans to launch a new website. Lila, the company's CIO, thinks that the company can better reach its cu

Kisachek [45]

Answer:

<u>e-commerce</u>.

Explanation:

When Molave Furniture Company wants to launch a new website to customize the ability for customers to shop online and thereby increase sales, it is an e-commerce promotion strategy.

In order for Lila to be able to effectively promote e-commerce, it is essential that the focus is on optimizing the customer experience, the site must be easily accessible, as well as a logistics service that ensures agility in receiving goods, as well as a efficient after sales service to answer questions and resolve purchase related issues.

4 0

3 years ago

1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchas

marin [14]

Answer:

1. a. Allocated prices

First add the market values = 444,150 + 255,150 + 56,700 + 189,000 = $945,0

Building allocated price Land allocated price

= 444,150/ 945,000 * 830,000 = 255,150/945,000 * 830,000

= $‭390,100‬ = $224,100

Land improvement allocated price Four vehicles allocate price

= 56,700/945,000 * 830,000 = 189,000/945,000 * 830,000

= $49,800 = $166,000

b. Journal entry

Date Account Details Debit Credit

Jan. 1, 2017 Building $390,100

Land $224,100

Land improvement $49,800

Vehicles $166,000

Cash $830,000

2. Depreciation on building using straight-line method.

= (390,100 - 28,000) / 15

= $‭24,140‬

3. Depreciation on land improvements using double declining method.

First do straight line:

= 49,800/ 5 years

= $9,960

Straight line rate of depreciation = 9,960/49,800 = 20%

Double declining will be twice that rate = 40%

Depreciation = 40% * 49,800

= $‭19,920‬

4 0

2 years ago