Answer:
According to the classical theory of inflation, an increase in the money supply would cause aggregate demand curve to shift to the right. Output would increase and price level would increase. However, in the long run, would shift to the left. Output would reduce and the price level would continue to increase.
Explanation:
Inflation occurs in an economy when the overall price level increases and the demand of goods and services increases.
the classical theory of inflation explains how the aggregate price level gets determined through the interaction between money supply and money demand.
Tn the classical theory of inflation:
- Money is considered the asset which is utilized by people to purchase goods and services on a regular basis.
- Their view is that the general price is determined by the total demand for and total supply of goods just as the price of any good is determined by the forces of demand and supply for it.
- According to them inflation is a situation caused by excess demand, in which the total demand for goods as measured by the volume of money offered is in excess of supply of goods at prevailing prices.
Answer:
The growth rate of the U.S economy in 2011 was 5.65%
Explanation:
This is a simple calculation
We use this formula to calculate percent changes from one period to another:
% change = 
We have that the GDP for 2010 was $11,150 billion and the GDP in 2011 was $11,780 billions we then apply the formula:
% change = 
% change = 
This means that the growth rate of the U.S economy in 2011 was 5.65%
Answer:
180 000 common stock shares outstanding
Explanation:
preference shares are not used in calculating earning per share. Earning per share is the part of the firm's profit that is attributed to common stock shares. It is an indicator of financial strength of a company. It also shows the intrinsic value of the company's shares. This can be used to determine if a share is overvalued or under valued in the equity market.
The company has 120, 000 common stock shares and issued additional 20,000 common stock shares totaling 180,000 common stock shares.
Answer:
Decrease in income by $227,000
Explanation:
The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;
= -Sales + Direct cost + fixed cost - salary per year
= -$980,000 + $343,000 + ($450,000 - $40,000)
= -$980,000 + $343,000 + $410,000
= -$227,000
Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000
Decrease in income by $227,000
