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Orlov [11]
4 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]4 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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What would explain the rise of the almond industry in California?
AlexFokin [52]
 First, the conditions in the Central Valley of California are very favorable for growing almonds. The conditions include rich soil, a mild climate, abundant sunlight and good water supply. Also, the production of almonds from California has a higher yield than Spain which has been the world's top almond producer so California is competitive. 
8 0
3 years ago
What kind of lights can be used to highlight merchandise while leaving the rest of the display space dimly lit or dark?
leva [86]

Answer:

Accent Lighting is used to highlight merchandise while leaving surroundings relatively darker  

Explanation:

  • these lighting are used to highlight specific areas of the store or specific offerings.
  • they make products pop up and show their importance to shoppers
  • some common examples are wall sconces, track lights and recessed lights.
  • generally they are used within shelves, nook displays, and on display walls
  • I have also attached a picture of footwear retail store for reference.    

3 0
3 years ago
John Jamison wants to accumulate $62,154 for a down payment on a small business. He will invest $34,000 today in a bank account
FromTheMoon [43]

Answer:

It will take him 7 years.

Explanation:

Hi! We need to calculate the amount of time that it requires an investment of $34000 to reach $62154 at an interest rate of 9% annually.

By using the formula of Present Value we can isolate n:

The formula is:

PV=Ct/[(1+r)^n]

Ct= cash flow at t time

r= rate

n= period of time

To calculate how many years, we need to isolate n from the PV formula:

n=[ln(Ct/PV)]/ln(1+r)

n=ln(62154 /34000 )/ln(1+0,09)

n=7

8 0
4 years ago
The company expects dividends to growth at 20% per year for the next 12 years and eventually leveling off at 9% into perpetuity.
ddd [48]

Answer:

Price of the stock today = $199.83

Explanation:

The current price of the stock can be computed using the two stage dividend growth model of the DDM approach. The DDM or dividend discount model values a stock based on the present value of the expected future dividends from the stock.

The formula for the price of the stock today using the two stage growth model is attached.

Price of the stock today = 1.95 * (1+0.2) / (1+0.12) + 1.95 * (1+0.2)^2 / (1+0.12)^2

+ 1.95 * (1+0.2)^3 / (1+0.12)^3 + ... + 1.95 * (1+0.2)^12 / (1+0.12)^12  +  

[ (1.95 * (1+0.2)^12 * (1+0.09)) / (0.12 - 0.09) ] / (1+0.12)^12

Price of the stock today = $199.83

8 0
3 years ago
What will you be least likely to be responsible of as part of the accounting team of your organization? A. reconciling accounts
riadik2000 [5.3K]

Accounting is <em>a field that is concerned with the processing, measuring, and communicating of financial information of a company.</em> If you worked in an accounting department, you would most definitely have to reconcile accounts, prepare financial statements, monitor accounting activities, and prepare an investment schedule for the organization.

You will not, however, be expected to (D) develop marketing and advertising strategies. This type of task is usually assigned to the marketing department of a company.  

5 0
4 years ago
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