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Pavel [41]
3 years ago
9

The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is the lik

ely explanation?

Business
1 answer:
Veseljchak [2.6K]3 years ago
7 0

Answer: Input Prices have increased.

Explanation:

When an Economy sees prices rising but at the same time productivity is falling, the likely cause of that is an increase in Input prices.

Input Prices are the prices of the raw materials and other goods needed to produce finished goods. If these prices should rise, it becomes more expensive for producers to produce and they will therefore reduce the amount of goods they produce. This reduction in Quantity leads to an increase win prices because according to the Law of Supply and Demand, if supply reduces and demand remains the same then prices must increase till a new equilibrium is reached.

For example, imagine a hypothetical Economy of Steel Makers. If the price of Iron changed from $5 to $10, producers who were producing 20 units of Steel will see their costs double and react by producing only 10 units of Steel to maintain cost margins thereby dropping Productivity.

The 20 units of Steel used to be sold in the market at $20 but now that the supply has dropped to 10 units, the price doubles to $40 to cater for this reduction in Quantity.

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How many of Amway distributors make money
satela [25.4K]
1.5 million distributors
5 0
3 years ago
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished g
Korolek [52]

Answer:

\left[\begin{array}{ccc}-&Q2&Q3\\Sales&327,000&221,000\\Ending&132,600&153,600\\Beginning&196,200&132,600\\Production&263,400&242,000\\\end{array}\right]

Explanation:

Ending: 60% of nex quearter

q3 221,000 x 60% = 132,600 ending of q2 (therefore beginning of q3

q4  256,000 x 60% = 153,600 ending of q3

begining of q2 is ending of q1 196,200

Production:

sales + desired ending inventory - beginning units

3 0
3 years ago
Identify the accoun title.
hammer [34]

Answer:

1. On formation of new Company and receipt of cash of $ 12,000 from shareholders

Cash Dr    $ 12,000

To Share capital Cr $ 12,000

2. On purchase of truck for $ 18,000

  Truck A/c Dr $ 18,000

To Cash    Cr    $ 18,000

(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)

3. On payment of dividend in cash

Dividend A/c    Dr $ 10,000

  To Cash Cr    $ 10,000

4. On purchase of land

Land A/c Dr $ 50,000

To cash    Cr    $ 50,000

( On purchase of land on payment of $ 50,000).

There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:

Land A/c Dr    $ 55,000

To Cash    Cr    $ 50,000

To gain on purchase of land    Cr $ 5,000

5 On declaration of dividend

Dividend A/c Dr    $ 1,100

  To Dividend Payable A/c Cr $ 1,100

On payment of dividend after 60 days

Dividend payable A/c    Dr    $ 1,100

To Cash    Cr $ 1,100

6. After each month wages will be due to its workers, then accounting entry will be recorded as under

Wages A/c    Dr    $ 5,600

To Wages payable A/c    Cr $ 5,600

After two weeks, on payment of wages, the accounting entry will be recorded as under

Wages payable A/c    Dr $ 5,600

  To cash Cr    $ 5,600

Explanation:

7 0
3 years ago
ppreciation of the euro relative to the U.S. dollar will cause a U.S.-based MNC's reported earnings (from the consolidated incom
Tems11 [23]

Answer:

Decrease or fall, Purchasing

Explanation:

Appreciation is the term which is defined as the increase in the currency value relative to the another currency, which could be exchanged for a huge amount of foreign currency.

So, when there is appreciation in euro in relation to US dollar, it cause US grounded MNC reported earnings to decrease as the US dollar will not be exchanged because euro is appreciated.

And when the firm desire to reduce the exposure to the exchange rate movements, it might stabilize the reported earnings through purchasing the euros in the foreign exchange market.

6 0
3 years ago
What information is important when choosing a healthcare plan?
Nataliya [291]
5 Things to Consider When ChoosingYour Health Coverage

Type of plan and provider network. Do the health care providers, hospitals and pharmacies you prefer fall within the plan's network?

Premiums. How much will you pay per month for coverage?

Deductibles. What is the amount you must pay out of pocket before your coverage kicks in?

Copay or coinsurance

Coverage of Medicines




I hope it helped you!
8 0
3 years ago
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