Answer:
is producing at a point where output is less than potential GDP.
Explanation:
When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.
Answer:
Gain from sale = $23,067
Explanation:
the none interest bearing note must be recorded at present value:
present value of the note = face value / (1 + r)ⁿ
- face value = $253,240
- r = 11%
- n = 3
PV = $253,240 / (1 + 11%)³ = $185,167
the note receivable must be recorded at $253,240, but $68,073 will be recorded as interest revenue.
the journal entry for the transaction should be:
January 1, 2020, sale of a building:
Dr Notes receivable 253,240
Dr Accumulated depreciation 101,140
Cr Building 263,240
Cr Interest revenue 68,073
Cr Gain from sale 23,067
Answer:
The Net Cash Flow is $9,300,000.
Explanation:
A statement of cash flows with amounts in thousands can be created to determine the Net Cash Flow as follows:
Ruston Company
Statement of Cash Flows
For the Year 2020
<u>Details $'000 </u>
Net Income 9,100
Adjustments from Operating Activities <u> 1,100 </u>
Net Cash Flow from Operating Activities 10,200
Net Cash Flow from Investing Activities (4,300)
Net Cash Flow from Financing Activities of <u> 3,400 </u>
Net Cash Flow <u> 9,300 </u>
Since the amount is in thousands, that implies that the Net Cash Flow is $9,300,000.
Answer: Foreign Direct Investment
Explanation:
Foreign Direct Investment is a type of investment into a country where the foreign investor establishes a presence by actually running and operating a company in the domestic country.
This is what the large theme park wants to do in Pantay. By making a commitment and hiring hundreds of locals, the company is intent on running a company on the island so this is Foreign Direct Investment.
