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3 years ago

Which is an example of someone who is cyclically unemployed?

Business

1 answer:

Korolek [52]3 years ago

7 0

Answer:

A. autoworker who is temporarily laid off from an automobile company because of a decline in sales. 

Explanation:

Cyclical unemployment is unemployment that occurs when full employment can not be met by the aggregate demand for goods and services in an economy.

This takes place during times of decreased economic growth or times of economic slowdown.

Cyclical unemployment is directly linked to the degree of macroeconomic behavior, which is the combined or collective activity of all economically involved individuals and entities.

Instead of linear, this overall trend is cyclical-economic activity tends to increase and fall rather than always rising or falling.

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What condition is necessary for a fiat money system to work? customers with checking accounts cannot earn interest on those acco

pashok25 [27]

What condition is necessary for a fiat money system to work? The government must control the money supply. Fiat money is not physical money like bills or coins, fiat money solely exists because if supply and demand of a good or service. This is a currency that the government has declared legal but it is not backed by any physical commodity. Due to that, the government has to be in control of the money supply for the fiat system to work.

7 0

3 years ago

Read 2 more answers

The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaper is published 252 days per year (5 days

elena-s [515]

Answer:

The effective annual rate of interest is "10.38%".

Explanation:

The given values are:

Nominal annual interest rate,

Q = 10%

i.e.,

= 0.10

Quarterly compounding,

q = 4

Now,

The effective annual rate of interest will be:

= $[{1 + (\frac{Q}{q} )}^q] - 1$

On substituting the given values in the above formula, we get

= $[{1 + (\frac{0.10}{4} )}^4] 1$

= $[(1 + 0.025)^4] - 1$

= $(1.025)^4-1$

= $1.10381289 - 1$

= $0.10381289$

On converting it into percentage, we get

= $10.38$ %

8 0

3 years ago

A. Suppose there is a surge in consumer confidence, creating an increase in aggregate demand in the economy. The Federal Reserve

Mrac [35]

Answer:

See below.

Explanation:

For a, first we calculate the credit multiplier of the economy,

Credit multiplier = 1 / reserve ratio

Credit multiplier = 1 / 0.25 = 4

This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.

For b, we again start by calculating the credit multiplier.

Credit multiplier = 1/0.10 = 10

Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.

The Fed thus increases the money supply by 150/10 = $15 billion.

This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.

Hope that helps.

4 0

3 years ago

Suppose the following transactions occur during the current year:

Genrish500 [490]

Answer:These transactions combines will increase the Gross Domestic Products by +2500

Explanation:

Gross domestic product is the Value of all goods and service produced within the boarders of the country over a period of time. Gross domestic product is measured in monetary terms. Gross domestic product can also be calculated as a total of all expenditures on goods and services in the economy.

we will now sow how these Transactions affect the gross domestic product

1. 50 cases of beer from a dutch distributor at $40 per case

When Dmitri (assuming he is in the United States) Purchases a 50 cases of beer abroad, Imports increase by $2000 ($40 x 50 cases)

Imports have a negative impact on the Gross domestic product, Therefore the Gross domestic product will decrease by $2000

-$2000 imports = -2000 Gross Domestic Product. ceteris pa

2.US Company sells 200 Transistors to a Spanish company at $15 per case

Exports increase Gross domestic product. When a US Company sells 200 transistors to a Spanish Company at a price of $15 per transistor, Exports will increase by $3000. When export increase Gross domestic product will also increase by -$3000 ceteris par

+$3000 export = + 3000 Gross Domestic Product.

3. Jake US Citizen pays $1500 for a laptop he orders from microell (a US company)

This transaction will increase Consumer's domestic consumption which is represent by a Variable denoted by C in the Consumption equation. When Jake pays $1500, Consumption increases by $1500 which also increases Gross domestic Product by $1500 ceteris pa

+$1500 Consumption = + $1500 Gross domestic product

Combined effect of these Transactions

Consumption + Investment + government spending + (export - import)= GDP

+$1500 + 0 + 0 + 0 + ($3000 - $2000) = + $2500

These transactions combines will increase the Gross Domestic Products by +2500

8 0

4 years ago

Read 2 more answers

Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account

Anna71 [15]

Answer:

$14,343.25

Explanation:

The computation is shown below;

For the first bank

The value of investment is

= $68,000 × 8% × 8 + $68,000

= $111,520

For the second bank

= $68,000 × (1 + 0.08)^8

= $125,863.25

So, the difference in these both amount should be

= $125,863.25 - $111,520

= $14,343.25

7 0

3 years ago