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grin007 [14]
4 years ago
15

Imagine that the U.S. economy has an initial unemployment rate equal to the natural rate of unemployment. Identify each event as

a factor that will either increase or decrease unemployment in the short run. increase An oil cartel raises oil prices. The U.S. dollar gains value against foreign currencies. American consumers expect higher income in the future. Brazil experiences economic growth and increases its demand for U.S. exports. U.S. real estate values rise.
Business
2 answers:
PilotLPTM [1.2K]4 years ago
5 0

Explanation:

Let’s explore one by one as proposed:

An oil cartel raises oil prices: all prices in the oil-related products will increase making it more expensive for companies to be able to afford employees. As the US economy is heavily based on oil import and consumption, the unemployment rate (let´s call it UR from now on) would increase. Countries that export more than import could benefit from this scenario.

The U.S. dollar gains value against foreign currencies: It would be more expensive to produce goods in the US as its currency becomes stronger. Hence companies could choose to produce overseas, increasing the UR. One of the factors that attract investments is a cheap currency, meaning that a company could operate there at lower costs than anywhere else.

American consumers expect higher income in the future: As fights about average salary would arise between employees and companies, igniting even sindicalization, its proper to think that the same as above could occur; companies could choose to produce overseas in countries less demanding of labor rights and income, such as China provinces (I would recommend for you to watch American Factory, a awarded Netflix documentary about that subject).

Brazil experiences economic growth and increases its demand for U.S. exports: as I said in the first alternative, a country that has increased or more expensive exports could benefit from that creating more jobs, in this case decreasing the UR. If Brazil demands more US products, more has to be produced by the country, which would mean more people employed in this attractive sector.

U.S. real estate values rise: to be honest, it only affects indirectly. As housing becomes more expensive, people have to work more to be able to afford housing. That would mean they seeking better-paying jobs or in the absence of those being homeless of at least unable to buy a home. We could argue that the UR would decrease because it becomes more expensive to afford housing and hence people would migrate more but that’s a long shot rationale.  

andreyandreev [35.5K]4 years ago
3 0

Answer:

Increase:

An oil cartel raises oil prices.

The U.S. dollar gains value against foreign currencies.

Explanation:

Decrease:

Brazil experiences economic growth and increases its demand for U.S. exports.

American consumers expect higher income in the future.

U.S. real estate values rise.

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Answer:

The answer should be 600

Explanation:

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ranfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,0
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Answer:

If discontinued, then their operating income will decrease by 168,800

It is a better deal to continue the backpack division active.

Explanation:

sales                  960,000

variable cost    (475,000)

contribution      485,000

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if Dropped

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Joe is a new broker. how often will he be required to reconcile his escrow account(s)?
storchak [24]

Joe is a new broker. He will be required to reconcile his escrow account monthly.

<h3>Who is a broker?</h3>
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  • Brokers that take on dual roles as buyers or sellers are considered primary parties to the transaction.
  • Neither function should be mistaken with that of an agent, who represents the principal party in a transaction.
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2 years ago
A financial institution offers a "double-your-money" savings account in which you will have $2 in 11 years for every dollar you
quester [9]

Answer:

The correct answer is 0.06317911524 or 6.3%.

Explanation:

According to the scenario, the given data are as follows:

FV = $2

PV = $1

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So, we can calculate the rate of interest by using following fomula:

FV=PV ( 1 + r ÷12)^12t

By putting the value, we get

$2 = $1 ( 1 + r ÷ 12)^(12 × 11

$2^(1 ÷ 132) = 1 + r ÷ 12

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r = 0.00526492627× 12

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