1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vovikov84 [41]
3 years ago
11

Advocates of the rational-expectations approach predict that a credible policy to lower inflation will result in a loss of outpu

t that is ______ than expected based on the sacrifice ratio. larger the same smaller sometimes larger and sometimes slower
Business
1 answer:
lubasha [3.4K]3 years ago
3 0

Answer:

The correct answer is lower.

Explanation:

The theory of rational expectations is a hypothesis of economic science that states that predictions about the future value of economically relevant variables made by agents are not systematically wrong and that errors are random (white noise). An alternative formulation is that rational expectations are "consistent expectations around a model," that is, in a model, agents assume that the predictions of the model are valid. The rational expectations hypothesis is used in many contemporary macroeconomic models, in game theory and in applications of rational choice theory.

Since most current macroeconomic models study decisions over several periods, the expectations of workers, consumers and companies about future economic conditions are an essential part of the model. There has been much discussion about how to model these expectations and the macroeconomic predictions of a model may differ depending on the assumptions about the expectations (see the web's theorem). To assume rational expectations is to assume that the expectations of economic agents can be individually wrong, but correct on average. In other words, although the future is not totally predictable, it is assumed that the agents' expectations are not systematically biased and that they use all the relevant information to form their expectations on economic variables.

You might be interested in
Extreme Adventurer, an outdoor nature magazine, marketed to potential customers who recently purchased camping equipment and fou
MrRa [10]

Answer:

potential customers who recently purchased camping equipment and four-wheel drive trucks.

Explanation:

  • The call to action has a huge potential hidden in reaching out to the customers and making them call for outdoor nature and adventure.
  • The magazine tries to catch the reader's attention by making claims such as tired of sitting in front of your computer.  
  • Those people who usually stay at home and are unable to move out due to some reason can use their purchased camping equipment and four-wheel-drive trucks.
7 0
3 years ago
The opportunity cost of an item is?​
Tanzania [10]

Answer:

The idea behind opportunity cost is that the cost of one item is the lost opportunity to do or consume something else; in short, opportunity cost is the value of the next best alternative. Click to see full answer Herein, what is opportunity cost give example? Opportunity cost is the profit lost when one alternative is selected over another.

Explanation:

3 0
2 years ago
Ssume that the mpc is 0.8 and the reserve requirement is 0.1. if the federal reserve needs to increase aggregate demand by $100
ANTONII [103]
0.7 that si probably it
3 0
2 years ago
At the beginning of​ 2018, Uptown​ Travel, Inc. has the following account​ balances: Accounts receivable $ 46,000 ​(Debit) Allow
gayaneshka [121]

Answer:

The amount of bad debt expenses for the year 2018 is $38,000

Explanation:

In the given question we have been told that the allowance for bad debts is $8,000 which the uptown travel, Inc has made and also another information that has been given in the question is that the uptown travel Inc uses the aging of account receivable method , this a method where we are calculating the amount of uncollectible  bad debt expenses.

In this question it is been given that there is $17,000 of amount that is written off and there is $29,000 of amount which is uncollectible , so we will add these amount , which will give us the total amount which is uncollectible,

 = $29,000 + $ 17,000

 = $46,000

But in the question it has been given to us that the uptown travel Inc ahs made a allowance for the bad debts, so we will subtract this amount from the total amount which is uncollectible to get the amount of bad debt expenses.

Bad debt expenses = $46,000 - $8,000

                                 = $38,000

7 0
3 years ago
How is a Trial Balance used?
Sloan [31]

In order to create balance sheets and other financial accounts, trial balances are a crucial document for auditors. To identify any accounting problems, a trial balance is performed to ensure that the general ledger accounts' debit and credit column totals match.

<h3>What purpose does a trial balance serve?</h3>

Any mathematical mistakes that have occurred in a double entry accounting system can be found using a trial balance. There shouldn't be any arithmetic errors in the ledgers if the sum of the debits and credits equals the total of the trial balance.

<h3>What exactly does a trial balance contain?</h3>

It varies. A trial balance can be used by businesses to monitor their financial status, and they may create multiple different types of trial balances over the course of the fiscal year.  All of the significant accounting items, including as assets, liabilities, equity, revenues, expenses, gains, and losses, may be included in a trial balance.

To Know more about  trial balance

brainly.com/question/15059786

#SPJ9

3 0
1 year ago
Other questions:
  • Which family deployability checklist will prompt you to make sure that you make arrangements for preparation of your family's ta
    8·1 answer
  • Anwar dresses for a cold fall day and steps outside to find it sunny and hot. he goes back inside to change out of his sweater a
    9·1 answer
  • Vulnerability assessment is a curvey of a system to identify:_____.
    15·2 answers
  • Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, deprec
    9·1 answer
  • Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the
    8·1 answer
  • On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The ma
    7·1 answer
  • Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to pay $90 and Aleiyah is willing to pay $50
    10·1 answer
  • If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the
    11·1 answer
  • Rightway Construction's project manager has been given the task of planning and implementing the construction of a playground fo
    12·1 answer
  • Assume that product Adam, a product designed for the High-End segment, can reach its full potential market share next year. A go
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!