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never [62]
3 years ago
10

For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the p

rice level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will _____________.
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:

fall

Explanation:

We know that when demand for goods and services are low, this can impact prices since there would be a fall in sales. This happened due to the fact that people would reduce their demand for the good given the increase in their price. From the question that we have here we have been told that the prices that were set by the catalogue when compared to the actual price level is on the high side.

given this explanation, the conclusion is that the sales from catalogues are going to fall

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The situation where one person's demand for a good depends on the consumption of the good by others is called a
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Network externality is the correct answer.

Explanation:

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g A debit is used to record which of the... A debit is used to record which of the following: Multiple Choice A decrease in an a
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Answer:

An increase in dividends account

Explanation:

In accounting, a debit is used to record an increase in asset, an increase in expense and a decrease in liability.

With regards to the above, the correct option is an increase in dividends account because dividend is a current asset hence a debit records an increase in assets. Dividend is the returns paid to an investor or shareholder who invest or buys shares in a company. It is the reward paid to an investor for investing in a company.

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3 years ago
The objectives of U.S. monetary policy are to achieve​ ______.
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Answer:

A. maximum employment and stable prices

Explanation:

The Fed has various roles. Among its key objectives is to monitor the economy to ensure maximum sustainable economic growth. To achieve this growth, the Fed uses different monetary tools to regulate inflation and influence unemployment levels.

The Fed receives economic data from other government agencies that help it determine the appropriate cause of action. For example, if the bureau of labor statistics reports a high level of unemployment, it could mean the economy is slowing down. The Fed then applies expansionary policies to stimulate growth.  If inflation is low or very high, it affects price stability. The Fed has tools to regulate inflation.

4 0
3 years ago
20. Anna reports the following income and loss: Salary$ 135,000 Income from activity A60,000 Loss from activity B( 35,000) Loss
Dmitry [639]

Answer:

Based on this information, Anna has the following suspended losses:

A) Activity B    Activity C

     $11,667      $18,333

Explanation:

a) Data and Calculations:

Income and Loss:

Salary                         $ 135,000

Income from activity A  60,000

Loss from activity B    ( 35,000)

Loss from activity C   ( 55,000)

The loss from activity B and activity C are reduced by the income from activity A in proportion.

Thus, the income from activity A reduces the losses in B and C:

Income from activity A  $60,000

Activity B loss of $35,000 is reduced by $60,000 * $35,000/$90,000 = $23,333 to $11,667 ($35,000 - $23,333)

Activity C loss of $55,000 is reduced by $60,000 * $55,000/$90,000 = $36,667 to $18,333 ($55,000 - $36,667)

b) Note that the losses from activities B and C cannot be reduced by the salary income because both activities are passive sources of income and not active like salary.

4 0
2 years ago
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