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Phantasy [73]
3 years ago
14

The percentage change in the price level from one time period to the next

Business
2 answers:
Lady_Fox [76]3 years ago
3 0

Answer:

The correct answer is inflation rate

Explanation:

Inflation is a situation where is so much money in circulation but there are few goods to be bought,hence too much pursuing too few goods and services.

The rate at which the prices increase in respond to the problem of inflation is known as inflation rate.

Inflation is a must-have in any economy in order to encourage producers to produce more, but a single digit inflation rate is what is desirable not double digit such 25% which translates into hyper-inflation

Levart [38]3 years ago
3 0

Answer:

inflation rate

Explanation:

The inflation rate is defined as the rise in the general price level during a certain time period, usually one year. it is usually calculated using the consumer price index (CPI) which measures the weighted average price of a basket of goods.

Many economists try to explain why inflation occurs, and the answers generally vary depending on the school of economics that they follow, but most agree that inflation is the result from an increase in the money supply that makes aggregate demand grow more than aggregate supply. The reasons behind the increase in the money supply are the questionable issues in this case.

Inflation is a necessary evil, because without inflation an economy cannot grow, but too much inflation results in a loss of the purchasing power of a currency and causes severe economic problems. Generally an inflation rate between 1-2% is considered healthy and necessary.  

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zheka24 [161]

Investing is important to make the cash flow of the economy.

Explanation:

The most vital component of a growing economy is the cash flow.

If the cash is not flowing from one business and one hand to another the economy is bogged down and then a slowdown occurs all across with a ripple effect.

Investments constantly bring capital in for the companies that are then able to spend that investment and to bring more and more money into the cash flow of the economy thus strengthening the circulation and creating growth.

This growth is what ultimately results in the growth of the whole economy.

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6 0
2 years ago
1. A parent sells merchandise to its subsidiary at a markup of 20% on cost. In the current year, the subsidiary had $120,000 in
NARA [144]

Answer:

The subsidiary reports cost of goods sold at A. $660,000.

Explanation:

Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:

Cost of goods sold = Opening inventory + Purchases - Closing inventory

The subsidiary calculates its cost of goods sold as follows.

Opening inventory           $120,000

Add: Purchases                $720,000

Less: Closing inventory    ($180,000)

Cost of goods sold           $660,000

Therefore, the correct option is A. $660,000.

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