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NARA [144]
2 years ago
11

Because of the compounding effect:

Business
1 answer:
luda_lava [24]2 years ago
6 0

Answer: c. small changes in economic growth rate lead to large GDP changes over time.

Explanation:

If there is even a small change in the rate at which the economy is growing, this increase will increase by even more the year afterward and then even more as time goes on. This is because the interest is being compounded overtime.

Look at the future value formula that shows compounding for instance:

Future value = Amount * (1 + rate) ^ number of periods

Assume even a change of 2% in the growth rate. In 30 years, this rate would have increased the economy by:

= 1 * ( 1 + 2%)³⁰

= 1.81

Which is a rate of:

= 1.81 - 1

= 81%

What started off as only 2% became 81% in 30 years. This is what compounding does.

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Answer:

Debit : Work In Process Account and Credit : Salaries and Wages Payable Account

Explanation:

All manufacturing costs are accounted for in a Work in Process Account during manufacture. Therefore Debit the Work In Process Account to show accumulation of the manufacturing costs and Credit the Salaries and Wages Payable Account to show the utilization of labor.

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Its InElastic Because It Lowered Hope It Helped :)
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A net worth statement, insurance plan, and a budget are all part of a _____. saving and investing plan financial plan savings ac
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<h3><u>Answer;</u></h3>

Financial plan

<h3><u>Explanation;</u></h3>
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4 0
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Explanation: Explanation's up there, what is there to explain

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3 years ago
When economists refer to "demand," they are speaking of: how much everyone wants of all products bought and sold in the nation.
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When economists refer to "demand," they are speaking of<u> a schedule of amounts of a product that buyers would purchase at alternative prices in a given time period.</u>

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