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3 years ago

The decline in Real GDP that occurs after the economy has peaked _____.

Business

2 answers:

lubasha [3.4K]3 years ago

8 0

Answer:

(D) GDP minus the capital consumption allowance

Explanation:

Capital consumption allowance is the expected percentage in value that is expected to depreciate and yes after the highest point in the business cycle, the next phase is Recession phase that is a declining phase where there is not much spending.

damaskus [11]3 years ago

7 0

Answer:

(D) GDP minus the capital consumption allowance

Explanation:

An econmy that reached it peak is the highest point between the end of an economic expansion and start of a contraction in a business cycle. In other words, peak is the turning point in the business cycle at which outputs stop increasing and starts decreasing, and afterr peak, recession phrase is often accompanied in which outputs is decreasing and unemployment is increasing.

Capital consumption allowance is the amount of money q country spend In a year to maintain its present level of econmic production. Capital consumption allowance represents depreciation in the overall econmy and expressed percentage of GDP.

So after the highest point in a business cycle; the peak, inflation and outputs decreases and leads to recession where won't be enough capital flow within the economy, spending and purchasing power would reduce.

Read more about Business

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6 0

2 years ago

Emerging adults are in a high-risk category for _____.

mario62 [17]

For many things identity theft, to be treated as if they don’t know as much etc

8 0

3 years ago

Bia garden store makes two types of gazebo. Making a wooden gazebo requires 4 hours of labor while making a metal gazebo require

Artyom0805 [142]

Answer:

C.$16 of overhead cost should be assigned to each wooden gazebo and

$40 of overhead cost should be assigned to each metal gazebo

Explanation:

2,000 wooden x 4 hours = 8,000 labor hours

500 metal x 10 = 5,000 labor hours

total hours 13,000

single manufacturing overhead: 52,000 / 13,000 = $4 per labor hours

wooden gazebos: 4hours x $4 = $ 16

metal gazebos: 10 hours x $4 = $40

8 0

3 years ago

The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricin

zavuch27 [327]

Answer:

Explanation:

As per Capital Asset Pricing Model (CAPM),

Expected Rate Of Return = $R_{f} \ +\ B(R_{m} \ -\ R_{f} )$

wherein, $R_{f}$ = Risk free rate of return on treasury bonds

B= Beta , which represents the degree of sensitivity of security return to the market return.

$R_{m}$ = Return on market portfolio

Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)

= 13.2%

CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.

The risk premium serves as a compensation for investing in risky securities instead of risk free securities.

5 0

3 years ago

Monsanto just came out with a new genetically modified seed that it believes will increase crop yields. The seed has been modifi

Lesechka [4]

Answer:

The answer is genetically engineered food or genetically engineered crop.

Explanation:

The scientists inform the farmers during the visit about how the seeds will increase their crop yields. This is most likely an example of____genetically engineered food______.

Because Mosanto modified the seeds DNA to improve than. Most of us have been eating genetically modified food for the past twenty years without knowing. And, in my opinion, that is the reason why we have more cancer, infertility, syndromes, and our kids are achieving puberty earlier. More than 50 different designers crops have passed through federal review process and about a hundred more are undergoing field trials.

The whole issue is that we totally lost control of what we are actually eating.

6 0

2 years ago