In the short-run, the effect on the price level and the real GDP is <em>a. Both the </em><em>price level </em><em>and </em><em>real GDP </em><em>rise.</em>
Since the economy is in long-run equilibrium in 2019, and the stock prices unexpectedly rise and stay high for a long time, it means that the price level does not:
- Rise while the real GDP falls
-
Fall while the real GDP rises
-
Fall with the real GDP.
<u>Question Options</u>:
a. both the price level and real GDP rise.
b. the price level rises and real GDP falls.
c. the price level falls and real GDP rises.
d. both the price level and real GDP fall.
Thus, in the short-term of this economy both the price level and real GDP rise.
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Answer:
The correct answer is option D.
Explanation:
Suppose technological advancement has helped in decreasing the cost of producing organic produce. This means that the farmers can now produce more at the same cost. As a result, the supply of organic produce will increase. This will cause a rightward shift in the supply curve.
At the same time, the demand for organic produce has increased. This will lead to a rightward shift in the demand curve.
The rightward shift in both demand and supply curve will lead to an increase in the equilibrium quantity. The change in the price level depends on the extent of the change in demand and supply.
Answer:
The answer is: A) omnichannel distribution
Explanation:
Onmichannel distribution is a multichannel approach to sales were customers are provided with a seamless shopping experience by integrating operations between brick and mortar stores and online shopping.
The internet changed our world and made information available anywhere, anytime. So shoppers can now buy something online at 11 PM while lying on their beds and they can decide to get the products sent home or pick them up at a store by themselves.
Companies that aren´t able to offer this type of shopping experience will tend to disappear (i.e. Sears).
Answer:
The new cost of capital if this firm changes capital structure is 1.3
Explanation:
From the provided information:
All equity beta = 1
New D/E ratio = 0.5
Then, the new capital structure with levered beta is given by:
new capital structure = All equity beta *(1 + D/E*(1 - tax rate))
= 1*(1 + 0.5*(1 - 40%))
= 1.3
Therefore, The new cost of capital if this firm changes capital structure is 1.3
Answer:
Fifo Inventory $665
Moving Average= $ 606
Lifo Inventory $ 592
Explanation:
Purchases
Date Units Unit Cost Sales Units Fifo Inventory
July 1 13 $115
<u>July 6 9 </u>
<u> 4 $115 $460</u>
July 11 6 $122
<u>July 14 6 </u>
<u> 4 $122 $488</u>
July 21 7 $132
<u>July 27 6 </u>
<u> 5 $ 133 </u><u> $665</u>
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Moving Average Method
= Total Cost of Purchases/ No of items= 13*115 + 6*122+ 7*132/13+6+7
= 1495+ 732+ 924/26= 3151/26= 121. 192
No of units in the Ending Inventory= 5 * 121.192= $ 605.96
Purchases
Date Units Unit Cost Sales Units Lifo Inventory
July 1 13 $115
<u>July 6 9 </u>
<u> 4 $115 $460</u>
July 11 6 $122
<u>July 14 6 </u>
<u> 4 $115 $460</u>
July 21 7 $132
<u>July 27 6 </u>
1 132 $132
<u> 4 $ 115 $460</u>
<u> 5 </u><u> $ 592</u>