If people have rational expectations, the economy may not have to endure an unemployment rate as high as predicted by the short-run Phillips curve.
The statement is false.
The Phillips curve shows the relationship between inflation and unemployment. In the short-run, inflation and unemployment are inversely associated; as one amount will increase, the alternative decreases.
In the end, the unemployment rate is independent of inflation and the Phillips curve is vertical on the herbal fee of unemployment. Whilst actual inflation exceeds predicted inflation, unemployment exceeds the natural fee.
An increase in fee expectancies shifts the Phillips curve upward and makes the inflation-unemployment alternate-off much less favorable. in the end, the unemployment charge is unbiased of inflation and the Phillips curve is vertical at the natural price of unemployment.
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For his first year of business, Bob’s accounting profit was $5,000 (5,000 = 80,000-67,000-4%*200,000), and his economic loss was $35,000 (-35,000 = 5,000 - 40,000) based on the information shown on the question above. The accounting profit is a recorded profit based on every business transaction occurring in a one-year period. The economic profit (loss) is a difference between a revenue and its opportunity cost.
<span>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. </span>
Answer: b. 3 years
Explanation:
Based on the future value of $3,246 and the annual payment of $1,000, one can guess that the number of payments (years) till the future value is reached will be 3 years.
Plug 3 years in to find out if you are right;
= Annuity * (( (1 + r)^n - 1) / r)
= 1,000 * (( ( 1 + 8%)³ - 1) / 8%)
= $3,246
<em>Answer is proven to be 3 years. </em>
Answer:
1. Flexibility: Small businesses experience less bureaucratic inertia. This enables them to respond to changes in the market more quickly than big companies that have to jump through their own hoops. Small businesses can maneuver where big businesses lack the speed. In a world that is continually speeding up, businesses are facing the challenge of adapting quickly.
2. Personal: Small businesses can be personal in ways that big ones cannot. This allows for more meaningful interactions between businesses and customers. Big companies spend massive amounts of money trying to create this same level of personal engagement.
3. Passion: When a business is a run by a smaller number of people or just one self-employed individual you often see more pure passion. That passion hasn’t been diluted by large staff and or altered by a compromised vision.
4. Independence: With less bureaucracy comes more independence. Small business entrepreneurs are able to exercise with much more independence, which is often part of what got them into running a small business in the first place.
5. Best in their niche: It’s hard to please everyone, and where super companies are trying to please the majority a small business can zoom in on a niche and provide them with exactly what they need.
6. Local Contributions: Small businesses typically circulate more of their revenue back into their local community. This makes the local economy more resilient, which in turn makes the global economy more resilient.
Explanation:
.