During the process of operational planning, management must compare market demand with Capacity.
Capacity refers to the company's ability to fulfill the amount of demand that exist for the products. If a company has a lot of orders without the ability to fulfill it, they will not be able to rake in the profit from the market.
Answer:
Suppose the economy is experiencing an output gap of –3%
a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:
The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.
The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.
b. The policies identified in part a,
can be used together to raise actual output toward potential output.
Explanation:
Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S). This equilibrium can be achieved at a level of interest rate that maximizes output. The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.
Answer:
It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.
Explanation:
Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.
It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.
Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.
Answer: $5 billion
Explanation:
First find the spending multiplier which is a multiplier that shows how Aggregate demand increases as a result of additional spending.
Multiplier = 1 / (1 - Marginal propensity to consume)
= 1 / ( 1 - 0.8)
= 5
If the government wants to raise Aggregate demand by $25 billion, they should spend:
Increase in AD = Amount * Multiplier
25 billion = Amount * 5
Amount = 25 / 5
= $5 billion
The first one!
Bob's stocks are worth more than leslie's.
