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Dmitriy789 [7]
3 years ago
7

Suppose that the European Union is now experiencing a recession. Its actual real GDP is €200 billion, and the estimate of its po

tential real GDP is €350 billion. The European actual unemployment rate is now 9.0%, while its estimated natural rate of unemployment is 4.5%. What open market operation would you suggest that the European Central Bank do? Explain how this open market operation would bring the European Union back to full employment.
Business
1 answer:
jek_recluse [69]3 years ago
6 0

Answer and Explanation:

As per the data given in the question,

The central bank have various tools to apply expansionary policy and these tools are :

- Reserve ratio.

- Discount rate.

- Open market operations.

The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.

Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.

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on january 1, 2021, adams-meneke corporation granted 15 million incentive stock options to division managers, each permitting ho
Bingel [31]

Compensation expense for the stock option plan in 2021, 2022, 2023 are $210 millions, $96 million, $108 million.

Options granted 120 Millions

Multiply: Estimated fair value per option is $ 3

Total Compensation Expense is $ 360 Millions

Divided by: No. of years in vesting period (2021,2022 & 2023) 3 Years

Compensation expense for the stock option plan in 2021. is $ 120 Millions

  •                     <u>Amounts are expressed in millions $.</u>

<u>Date </u>                   <u>General journal </u>                     <u>debit</u>             <u>Credit </u>

31st Dec, 2021 Compensation expense            $ 120

                     Paid in capital – stock options                     $ 120

  • Percentage of option forfeited (100%-10%) = 90%
  • Cumulative Compensation expense Up to Year 2022 (360*90%*2/3) = $ 216

Less: recognized in earlier year is $ 120

Compensation expense For Year 2022 is $ 96

Cumulative Compensation expense Up to Year 2023 (360*90%*3/3)  

                                                                                          = $ 324

Less: recognized in earlier year is $ 216

Compensation expense For Year 2023 is $ 108

  •                        <u>Amounts are expressed in millions $.</u>

<u> Date </u>                     <u>General journal </u>                   <u>debit  </u>         <u>Credit </u>

31st Dec, 2023 Compensation expense           $ 96  

                      Paid in capital – stock options                    $ 96

     

31st Dec, 2023 Compensation expense    $ 108  

                      Paid in capital – stock options                   $ 108

Learn more about Compensation Expense, here

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3 0
1 year ago
Which of the following scenarios illustrates cost-push inflation?(1 point)
Crazy boy [7]

Answer:

1. Inflation is best described as _____.

- an upward, general trend of prices in the economy

2. Which of the following scenarios illustrates cost-push inflation?

- An increase in the price of raw materials decreases aggregate supply, pushing prices higher throughout the economy.

3. The Consumer Price Index in 2018 was 251. In 2019, the CPI rose to 257. Calculate the inflation rate from 2018 to 2019. Round your answer to the nearest tenth of a percent.

- 2.4%

4. The Consumer Price Index of any given year provides _____.

- the relative price of a basket of consumer goods as compared to base year prices

5. The rate of inflation in a hypothetical economy is projected to be 1.5% in the coming quarter. Given this information, the Federal Reserve is likely to _____.

- make efforts to raise the inflation rate because 1.5% is below the desired rate of inflation

Explanation:

Mark me braliest

These are 100% correct

3 0
2 years ago
The U.S. work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours:________
Len [333]

Answer:

It will Decreases U.S. real GDP and on the other way round it will increases the well-being of a typical working person in the U.S.

Explanation:

The impact of the decline in working hours is that it will Decreases U.S. real GDP and on the other way round it will definitely lead to increase in the well-being of a typical working person in the U.S. because of the decline in the U.S work week which was formally 60 hours in the 1980 but now 40 hours today because a typical working person will have more time for him/her and the stress involved in working for 60 hours per week will reduce when compared with working for 40 hours per week because a typical working person in the U.S will preferred to work for 40 hours per week than 60hours per week for the betterment of their well being.

4 0
3 years ago
The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week o
Readme [11.4K]

Answer:

Type 1 decision error cost and Type 2 decision error cost

Explanation:

Type 1 decision error cost has to do with recruiting the wrong candidate or person specification for the job, type 1 error are expensive to the organization and frustrating to the employees. Type 2 decision error cost has to do with the opportunity cost forgone, when the right candidate which could have been hired, was not hired.

The CEO is likely to discover the Type 1 decision error cost

8 0
3 years ago
Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021,
Butoxors [25]

Answer and Explanation:

The computation of the percentage of change is as follows;

a. For 2020 to 2021

= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)

= ($473,000 - $503,000) ÷ ($503,000)

= -5.96% decrease

b .For 2021 to 2022

= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)

= ($521,000 - $473,000) ÷ ($473,000)

= 10.15% increase

In this way it is calculated

6 0
2 years ago
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