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Mumz [18]
3 years ago
12

Suppose the real GDP of this economy grows at an annual rate of 5%. Assume that the central bank would like to keep the inflatio

n rate at 2% per year. If the velocity of money remains constant, the central bank can achieve its goal by pursing an annual money growth rate of____________-.
Business
1 answer:
evablogger [386]3 years ago
7 0

Answer:

The correct answer is 7%.

Explanation:

The real GDP of an economy is said to be increasing at an annual rate of 5%.  

The inflation rate is kept low at 2%.  

The velocity of money is assumed to be constant.  

In this situation, the annual money growth rate will be equal to the sum of the inflation rate and rate of growth of real GDP.  

Annual money growth rate

= Inflation rate + Real GDP growth rate

= 2% + 5%

= 7%

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What are the types of wholesaler?​
Gala2k [10]

Answer:

1. merchant

2. agent and brokers

Explanation:

Merchant wholesalers buy from manufacturers and sell to other businesses. Agents and brokers are essentially independents who provide buying and selling services.

4 0
3 years ago
Use the following information for the next four questions.St. James, Inc. currently uses traditional costing procedures, applyin
Nonamiya [84]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Estimated overhead= $800,000

Total estimated direct labor hours= 4,000

Direct labor hours Beta= 1,200

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 800,000/4,000= $200 per hour

Now, we can allocate overhead to Beta:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 200*1,200= $240,000

6 0
3 years ago
The high-income economies of the world contain approximately __________ of the world’s population and produce and consume ______
Annette [7]

The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.

<h3>What is GDP?</h3>

The gross domestic product stands as a monetary measurement of the market value of all the final goods and services produced in a distinctive period by countries. Due to its complex and subjective nature, this measure exists often revised before being deemed a reliable indicator.

Gross domestic product (GDP) stands for the total monetary or market value of all the finished goods and services constructed within a country's borders in a typical period. GDP measures the worth of the final goods and services produced in the United States (without double counting the middle goods and services used up to produce them).

The high-income economies of the world include approximately 12% of the world’s population and produce and consume 60% of the world’s GDP.

To learn more about GDP refers to:

brainly.com/question/1383956

#SPJ4

6 0
1 year ago
Some economists argue that competitive price-searcher markets are inefficient because
inna [77]

Answer:

A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.

Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.

8 0
3 years ago
EA15.
alexgriva [62]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $2 per unit

direct labor of $3 per unit

manufacturing overhead of $1 per unit.

Fixed costs are $35,000.

20,000 units:

Total direct material= 2*20,000= 40,000

direct labor= 3*20,000= 60,0000

overhead= 1*20,000= 20,000

Total manufacturing costs= $120,000

Fixed costs= 35,000

Total product costs= $155,000

25,000 units:

Total direct material= 2*25,000= 50,000

direct labor= 3*25,000= 75,0000

overhead= 1*25,000= 25,000

Total manufacturing costs= $150,000

Fixed costs= 35,000

Total product costs= $185,000

3 0
2 years ago
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