Answer:The real Gdp
Explanation:
Short run aggregate supply curve is upward sloping and it shows the relationship between the price level and output. it is upward sloping because the quantity supplied increases when the price rises. Real GDP or otherwise known as changes in aggregate demand and aggregate supply is assumed to remain unchanged because they are not caused by changes in the price level. Economic growth are one of the things that can cause change in real Gdp. Things that cause changes along a given short run supply curve can include the following: wages, increase in physical capital or advancement in technology.
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By studying these factors, a better understanding of the organizational climate is possible, as well as helping in decision making and improving people management practices.
the statement that is true is c
Answer:
E: 6.34
Explanation:
First we solve for the PV of the next years dividends using the lump sum PV formula:
rate = 12%
![\left[\begin{array}{ccc}Year÷nds&PV\\1&1.3&1.1607\\2&1.69&1.3473\\3&2.197&1.5638\\4&2.8561&1.8151\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26dividends%26PV%5C%5C1%261.3%261.1607%5C%5C2%261.69%261.3473%5C%5C3%262.197%261.5638%5C%5C4%262.8561%261.8151%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Total of 5.8869
Then, this with the PV of the future dividends usign the gordon model should match 40 dollars.
so the PV of the indefinite sum of dividends should be: 40 - 5.8869 = 34.1131
\frac{Dividends_1}{return - growth} = Value
This is four years into the future thus, we discount as well for the rate of return We want ot knwo the value at the fourth year to solve for the grow rate:
34.1131 x 1.12^4 = 53.67762328
Now the formual for the gordon model requires next year dividends thus D0 x 1 + g and we don't know g so we have to operate to solve it:
The correct answer would be E
