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stich3 [128]
3 years ago
5

A negative oil price shock: It is common to blame some of the poor macroeconomic per- formance of the 1970s on the rise in oil p

rices. In the middle of the 1980s, however, oil prices declined sharply. Using the AS/AD framework, explain the macroeconomic consequences of a one-time negative shock to the in ation rate, as might occur because of a sharp decline in oil prices.
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.

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He offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0
Alik [6]

If he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

First step

Expected value for Superior performance=$10,000×0.10

Expected value for Superior performance=$1,000

Expected value for Good performance=$6,000×0.20

Expected value for Good performance=$1,200

Expected value for Fair performance=$3,000×0.50

Expected value for Fair performance=$1,500

Expected value for Poor performance=$0×`1,500

Expected value for Poor performance=$0

Now let determine the total  expected value of the annual bonus amount

Expected value of annual bonus amount=$1,000+$1,200+$1,500+$0

Expected value of annual bonus amount=$3,700

Inconclusion if he offers an annual bonus of $10,000 for superior performance, $6,000 for good performance, $3,000 for fair performance, and $0 for poor performance. Based on prior records, he expects an employee to perform at superior, good, fair, and poor performance levels with probabilities 0.10, 0.20, 0.50, and 0.20, respectively. The expected value of the annual bonus amount will be: $3,700

Learn more here:

brainly.com/question/22845794

5 0
2 years ago
Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of Dece
Zina [86]

Answer:

$20,000

Explanation:

Calculation for the liability that should be reported for vacation pay

Using this formula

Liability=Vacation weeks*Compensation averaged per week for Year 1

Let plug in the formula

Liability=20 weeks × $1,000 per week

Liability = $20,000

Therefore the amount of liability that should be reported for vacation pay will be $20,000

5 0
2 years ago
A u.s. consumer electronics company has to shut down because it cannot compete against foreign manufacturers. for the united sta
liq [111]
<span>This is an example of a cost of international trade. This can make it so that some domestic businesses lose their market share to foreign companies. This can create less profits for the company and made it so that it is difficult to create jobs.</span>
8 0
3 years ago
You would cut the mirepoix ingredients smaller when making a fish fumet than when making a beef stock because the
Stolb23 [73]

Answer:

The correct answer is (A) fish has a more delicate flavor

Explanation:

From the given information from the question which says that:

You would cut the mirepoix ingredients smaller when making a fish fumet than when making a beef stock because, the fish will have a more delicate flavor.

4 0
3 years ago
Business transactions
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Answer:

A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services

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2 years ago
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