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

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 unit

Ksenya-84 [330]

Answer:

-0.33

Explanation:

The calculation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)

where,

Change in quantity demanded is

= Q2 - Q1

= 80 units - 100 units

= -20 units

And, the average of quantity demanded would be

= (80 units + 100 units) ÷ 2

= 90 units

Change in price is

= P2 - P1

= $2 - $1

= 1

And, the average of the price is

= ($2 + $1) ÷ 2

= 1.5

So, after solving this, the price elasticity of demand is -0.33

7 0

3 years ago

Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r

ahrayia [7]

Answer:

The most I could pay for the investment is $12,960.09

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years Cashflows [email protected] 12% PV

1 5000 0.892857143 4,464.29

2 5300 0.797193878 4,225.13

3 6000 0.711780248 4,270.68

Total of present values 12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.

8 0

3 years ago

The current sections of Culver Corporation's balance sheets at December 31, 2021 and 2022, are presented here. Culver Corporatio

natta225 [31]

Answer:

Net Cash Provided by Operating Activities is $286,000

Explanation:

Culver Corporation's

Partial Statement of Cash flows

For the year ended December 31, 2022

Cash Flow from Operating Activities

Net Income $229,500

Adjustment to reconcile net income to

net cash provided by operating activities

Depreciation Expenses $40,500

(Non-cash expense)

Decrease in Accounts Receivables $13,500

(133,500 - 120,000)

Decrease in Inventory $6,000

(258,000 - 252,000)

Increase in Prepaid Expenses -$7,500

(33,000 - 40,500)

Increase in Accrued Expenses Payable $15,000

(22,500 - 7,500)

Decrease in Accounts Payable -$10,500 $57,000

(127,500 - 138,000)

Net Cash Provided by Operating Activities $286,000

4 0

3 years ago

The Endot Manufacturing Company, a manufacturer and wholesaler of widgets, has provided you with the following financial informa

Katyanochek1 [597]

Quick ratio = 1.30 (Option C)

Explanation:

Quick ratio or acid test ratio is calculated as follows:

(Cash plus marketable securities plus accounts receivable ) divide by total current liabilities

In our question, we have been given with the data:

Cash = 45 million

Marketable securities = 33 million, accounts receivable = 66 million, total current laibailities = 111 million

So, let us now put the given values in the above stated formula:

Quick ratio = ( 45 plus 33 plus 66) divide by 111

After calculating we get, 1.30

Therefore, the quick ratio is 1.30

3 0

3 years ago

Hutton Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary

Dmitrij [34]

Answer: (B) Manufacturer agent

Explanation:

A manufacturer agent is refers to the independent sales agent in an organization.

The responsibility of a manufacturer agent is that it is an intermediary an organization as it helps in the product distribution process.

It mainly control all the promotional and the proving decision of the products in an organization and also represent organization as the seller. According to the given question, the company should hire the manufacturer agent.

Therefore, Option (B) is correct.

3 0

3 years ago