An CPI can be said as an index which measures the prices of "market basket" of some 300 good and services that is assumed to be fixed and the services are brought by a "typical" consumer.
Explanation:
1)<u>How does the Bureau of Labor Statistics (BLS) calculate the rate of inflation from one year to the next?</u>
The Consumer Price Index is an index which measures the prices of market basket of goods and services and it is used by the Bureau of Labor to calculate the rate of inflation, using the price of the basket from the current year divided by the base year, then multiplied by 100.
<u>2)What effect does inflation have on the purchasing power of a dollar?</u>
Inflation lowers the purchasing power of the dollar and it basically occurs when the market basket of goods is priced positively with reference to the rate of inflation.
<u>3) How does it explain differences between nominal and real interest rates</u>
A real interest rate is an interest rate that takes into account the effects of inflation in order to reflect the real cost of funds to the borrower and the real yield to an investor. A nominal interest rate refers to the interest rate that is calculated before taking the effects of inflation into account.
<u>4)How does deflation differ from inflation?</u>
Deflation occurs when the rate of inflation is negative.
Answer:
Assembly: 56,000 *Debit, Finishing: 40,000 *Debit, and Factory Overhead: 96,000 *Credit
Explanation:
Assembly
DM: 24,000
DL:35,000
FO: 35,000 x 160% =56,000
Finishing 26,000 and 25,000
FO 25,000 x 160% =40,000
<span>The viability and relevancy of insurance products is used to protect your business in case if you specialized on manufacturing unusual products and provides maintain stability of your production.</span>
Answer:
The answer to the following question is $4000.
Explanation:
Dowdy which is a C corporation, has a total of $14,000 in capital gain, in which $8000 comes from sale of tract land and rest of $6000 comes from sale of stock. And the company also has a capital loss of $18,000. So here the company is having a long term capital loss of $4000 ( $18,000 - $14,000 ), and this C corporation can deduct this long term capital loss from their taxable income ( the year in which loss was incurred ) . If in a situation, loss is not deducted from this year , then it can be carried 3 years or 2 years or even 1 years back and if there is capital gain , it can be deducted from it.
