Answer:
When an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Explanation:
According to the Keynesian perspective, firms produce output only if they expect it to sell.
While the availability of the factors of production determines a nation’s potential gross domestic product (GDP), the amount of goods and services actually being sold, known as real GDP depends on how much demand exists across the economy.
Keynes termed a fall in the aggregate demand as a recessionary gap.
A recessionary gap refers to an economy operating at a level below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.
Thus, when an economy produces at full employment, but consumers, government, there is a recessionary gap - Option B.
Answer:
The black death epidemic resulted to death about 34 million European, left more job vacant. This was becuase many workers died while the jobs the were working on as at that time remained almost unchanged. The remained workers after the black death demanded for rise in wages, although the lords stood against the demand.
Explanation:
Although worker population decreased because of the plague, the amount of land and the tools did not change much. Some farm animals died when the people who took care of them died. Because the remaining workers had more tools and land to work, they became more productive, producing more goods and services. When workers are more productive, employers are willing to pay higher wages. The Statute of Laborers and similar laws in other countries were not very effective. Some lords avoided violating the statute by making “in kind” pay-ments—paying workers with food or other goods rather than wages—or providing other “fringe benefi ts.” Some lords began to pay illegally high wages. Wages increased because there were fewer workers—labor had become more scarce
The answer to the question is (C) how changing circumstances may affect the business and how the business model can be adjusted to cope with them.
Business model is defined as a model that a business uses to determine how it plans to generate revenue and in turn, profit. Another term for business model is profitability model. Thus business model risk implies risk management principles that are applied on business model contexts.
Solution:
Sales Price $115,000 - BV $80,000 = $35,000
Gain on Sale /8 years = $4,375
Annual Amortisation of Unrealised Gain over Expected Useful Life of the Asset
Parent's Depreciation $84,000 + Sub's Depreciation $60,000 - Annual amortisation $4,375 = $139,625
