All categories

3 years ago

Okun’s law suggests that:

Business

1 answer:

slega [8]3 years ago

8 0

Answer:

a. A 1% increase is a positive output gap decreases the unemployment rate by 0.5%

Explanation:

Okuns law looked at the relationship between unemployment and output empirically.

It states that that for every 1% increase in the unemployment rate, positive output gap falls by roughly 2%.

I hope my answer helps you.

You might be interested in

The long-term liability section of Rainbow Digital Corporation’s balance sheet as of December 31, 2020, included 10% bonds havin

Anon25 [30]

Answer:

Loss on early extinguishment = 1,008,357.64

Explanation:

Data:

T = Interest rate = 10% = 0.10

FA = Face amount = $1,000,000

RD = Remaining Discount = $139,294

Y = Yield rate = 12% = 0.12

RT = Retirement Time = 6/12 = 0.5

BA = Bonds at = 101% = 1.01

EE = Gain (loss) on early extinguishment = ?

IE = Interest Expense = ?

D = Discount on bond payable = ?

Calculations:

IE = Y * (FA - RD) * RT

IE = 0.12 * ($1,000,000 - $139,294) * 0.5 = 0.12 * $860,706 * 0.5 = $51,642.36

D = FA - [IE - (T * FA * RT)]

D = $1,000,000 - [$51,642.36 - (0.10 * $1,000,000 * 0.5)] = $1,000,000 - [$51,642.36 - $50,000] = $1,000,000 - $1,642.36 = $998,357.64

EE = FA - [D + (FA * BA)]

EE = $1,000,000 - [$998,357.64 + ($1,000,000 * 1.01)] = $1,000,000 - [$998,357.64 + $1,010,000] = $1,000,000 - 2,008,357.64 = -1,008,357.64

EE = -1,008,357.64 (Loss)

4 0

3 years ago

The tangible assets of an organization include

Sloan [31]

Answer:

a. company reputation

Explanation:

yan po and tamang sagot...god luck po. ..

3 0

2 years ago

) A company finds that consumer demand quantity changes with respect to price at a rate given by D'(p) = - 2000 p 2 . Find the d

Stells [14]

Answer:

D(p) = 2,000 ÷ Price + 434

Explanation:

The computation of the demand function is shown below:-

Number of units of the product = 3000 ÷ Price + C

834 = 2,000 ÷ $5 + C

834 = 400 + C

C = 834 - 400

C = 434

So, D(p) = 2,000 ÷ Price + 434

Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question

3 0

3 years ago

At the end of the current year, the accounts receivable account has a debit balance of $762,000 and sales for the year total $8,

Nadya [2.5K]

Answer:

a. Adjustment for bad debts expenses in scenario a - $ 32,900

b. Adjustment for bad debts expenses in scenario b - $ 22,700

c. Adjustment for bad debts expenses in scenario c - $ 72,700

d. Adjustment for bad debts expenses in scenario d - $ 73,500

Explanation:

Computation of bad debts adjustment under scenario a

Receivables balance $ 762,000

Sales $ 8,640,000

Estimated bad debts expenses 1/2 % of sales $ 43,200

Pre adjustment balance of allowance for uncollectible $ ( 10,300)

Adjustment to provide doubtful accounts $ 32,900

Computation of bad debts adjustment under scenario b

Estimated bad debts expenses based on ageing $ 33,000

Pre adjustment balance of allowance for uncollectible $ ( 10,300)

Adjustment to provide doubtful accounts $ 22,700

Computation of bad debts adjustment under scenario c

Receivables balance $ 762,000

Sales $ 8,640,000

Estimated bad debts expenses 3/4 % of sales $ 64,800

Pre adjustment balance of allowance for uncollectible DR. $ 7,900

Adjustment to provide doubtful accounts $ 72,700

The pre adjustment balance is a debit balance of $ 7,900, so it has to be added to the required allowance balance

Computation of bad debts adjustment under scenario d

Estimated bad debts expenses based on ageing $ 65,600

Pre adjustment balance of allowance for uncollectible DR $ 7,900

Adjustment to provide doubtful accounts $ 73,500

The pre adjustment balance is a debit balance of $ 7,900, so it has to be added to the required allowance balance

4 0

3 years ago

Without prejudice to your solution to part (a), assume that you computed the June 30, 2020, inventory to be $60,480 at retail an

nataly862011 [7]

Answer:

The June 30, 2020, inventory at the June 30 price level under the dollar-value LIFO retail method:

$65,318.40

Explanation:

a) Data and Calculations:

June 30, 2020 Inventory = $60,480 at retail

Ratio of cost to retail = 68%

Inventory at cost = $41,126.40 ($60,480 * 68%)

General price level increase from 100 to 108

Inventory at the June 30 price level under the dollar-value LIFO retail method:

Inventory at cost = $44,416.50 ($41,126.40 * 108/100)

Inventory at retail = $65,318.40 (44,416.50/68%)

3 0

3 years ago