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Orlov [11]
3 years ago
15

Under ideal conditions inflation should not have any blurring effect on price signals. If wages and prices are rising at a const

ant 20% then individuals should be able to adjust their expectations accordingly. For example, if the price of bread increased by 20% and the price of the input flour also rose by 20%, the sellers should know that the real price of bread has not changed. The market equilibrium quantity and price has not changed. Why does inflation in the real world result in shortages and surpluses?
Business
1 answer:
fgiga [73]3 years ago
5 0

Answer:

1. Adjustments of or changes in price are not smooth or synchronized.

2. Inflation rarely have impact on the prices of inputs.

3. The concentration of sellers is more on nominal prices of goods than real prices.

Explanation:

Inflation can be described as a sustained increase in the general price level of commodities within a country over a period of time.

The following are the reasons inflation in the real world result in shortages and surpluses:

1. Adjustmensts of or changes in price are not smooth or synchronized.

2. Inflation rarely have impact on the prices of inputs.

3. The concentration of sellers is more on nominal prices of goods than real prices.

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Answer:

$15 million

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Franklin will recognize anticipated gross loss of $15 million in the first year if it recognizes revenue over time according to percentage of completion method which is ($54 million contract price less total estimated costs of $69million)

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<h3>What is a leaders role in a group?</h3>

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1) Effective communicator: A leader needs to be an effective speaker as well. A leader who has the ability to clearly convey his ideas and views has the art of communication.

2) Passion and commitment: A leader should be dedicated to his or her aims and goals. His enthusiasm ought to serve as an example for his followers and everyone else.

3. Positivity: His aura need to be so upbeat that nobody can avoid being affected by him. He needs to inspire people and spread optimism.

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