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3 years ago

At the point where actual inflation is equal to expected inflation

Business

1 answer:

Yuri [45]3 years ago

6 0

Answer: The short run Phillips curve intersects the long run Phillips curve.

Explanation: The Phillips curve states that unemployment and inflation have an inverse relationship. This means that they move in opposite directions, I.e. If inflation increases then unemployment decreases and vice versa.

In the graph attached the short run Phillips curve is L - shaped and shows the inverse relationship between both variables initially. The long run Phillips curve is a vertical line, and shows that unemployment rate remains steady regardless of inflation rate, in the long term. Where these 2 lines intersect is where actual inflation and expected inflation are the same.

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Assume these events happened to Bakko, Inc. in Year 4. Bakko uses December 31 for the annual reporting period. At the beginning

aleksandr82 [10.1K]

Answer:

1. Gain of $12,000 on sale of some equipment from one of the gas stations that Bakko still owns at 12/31/Year 4. - Part of income from continuing operations.

The gas station is still owned by Bakko so the gain received will form part of income from continuing operation.

2. Bakko receives $5,000 for a fuel contract that will begin in Year 5. - Not part of net income for Year 4

As per the Revenue Recognition principle of Accounting, revenue is only to be recorded when earned which means that this revenue will be in the Year 5 income.

3. Bakko has $100,000 gain on the sale of the gas stations on May 1, Year 4. - As a discontinued operation.

The gas station has been sold and so is a discontinued operation.

4. Operating results through April 30,Year 4 for the gas stations that were sold. - As a discontinued operation.

The gas station has been sold and so is a discontinued operation. Will be reported in the Income statement as such.

5. Bakko has a $20,000 loss on the sale of the donut stores on October 1. - As a discontinued operation.

The donut store was sold and is no longer a part of Bakko so is a discontinued operation.

6 0

3 years ago

PIRs (planned independent requirements) are calculated based on actual and forecasted sales.a) trueb) false

DochEvi [55]

Answer:

A. True

Explanation:

Option A is correct because PIRs (planned independent requirements) are calculated based on actual and forecasted sales.

In PIR, the independent requirement for final goods is calculated by the sales and the activities /operation for material planning process.

4 0

4 years ago

What are unlawful questions to ask during an interview

AveGali [126]

Answer:

Race, Color, or National Origin.

Religion.

Sex, Gender Identity, or Sexual Orientation.

Pregnancy status.

Disability.

Age or Genetic Information.

Citizenship.

Marital Status or Number of Children.

Explanation:

4 0

3 years ago

Read 2 more answers

A firm's operations drive its structure. a. True b. False

Wittaler [7]

True hope this helped

6 0

3 years ago

Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in

alina1380 [7]

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.

8 0

3 years ago