Answer:
This will lead to overestimation of CPI and inflation.
Explanation:
Suppose consumers buy two types of meat, beef, and pork. If the price of pork remains the same while the price of beef increases, the consumers will prefer the cheaper substitute. As a result, the demand for pork will increase and the demand for beef will decline.
If the Bureau of Labor Statistics does not include this substitution in the CPI calculation, it will cause the CPI to increase as the price of beef is increasing. But in reality, consumer spending has not increased as they are purchasing more of the cheaper substitute.
This will lead to the overestimation of both CPI as well as the inflation rate.
Answer:
$392,500
Explanation:
January 1,2021 200,000*12/12 $200,000
September 1,2021 $300,00*4/12 $100,000
December 31,2021 $300,000*1/12 $25,000
Borrowing costs to be capitalized $750,000*12%*9/12 $67,500
Average Accumulated expenditure for 2021 $392,500
Please note that borrowing costs incurred on construction loan will also be capitalized as it is specific construction loan..
All the expenditures have been averaged out from the date they are incurred.
Answer:
c. decrease the money supply, increase taxes
Explanation:
Unemployment rate lower than the natural rate of unemployment (long run unemployment), creates inflationary gap in the economy. It requires policies to be contractionary in nature. Hence, money supply should decrease and tax should increase to correct the economy.
Leading Indicator is a variable that predicts what will happen with the sales of another product is referred to as that product's.
<h3>What is a leading indicator?</h3>
A piece of data or a group of facts related to the economy that may predict future movement or change in the economy is known as a leading indicator. Future events and trends in business, markets, and the economy can be predicted and projected with the use of economic leading indicators. An example of a leading safety indicator would be the proportion of workers wearing hard helmets on construction sites. A leading indication is a predicted measurement. A lagging safety indicator might be the number of accidents on a construction site, which is an output measurement. Items like newly generated accounts, leads or opportunities, and won opportunities are examples of leading indicators. Won opportunities, lost opportunities, won amounts, and lost amounts are examples of lagging indicators.
To learn more about leading indicators click,
brainly.com/question/1357308
#SPJ4
Answer:
to meet the competitive requirements of customers, suppliers and business partners.
Explanation:
The world is slowly drifting towards a global age and we all need internet based technologies to keep up. The suppliers need the technologies to advertise their goods and keep up with customer demands and satisfaction. The customers need it to be able to find things they want and also get in touch with their favourite suppliers. The business partners need it to know the in and out of their investment and keep abreast of the business track.
