Answer:
Explanation:
a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.
This would: make output to remain unchanged, real interest to increase and current price level to increase as well.
b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.
C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.
d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.
Answer: The consumer price index will increase, but the GDP deflator will not increase.
Explanation:CPI(Consumer p ice index) is a concept used in Macroeconomics to mean the weighted average of the prices of
A basket of consumer goods and services.
GDP(gross domestic product) Is the value of the entire goods and services rendered within an economy over a given period of time.
GDP Deflator determines the price changes of all goods and services produced within an country.
As the price of Italian shoes imported into the Unites States of America rises the CPI INCREASES BUT THE GDP DEFLATOR WILL NOT INCREASE.
Answer:
The normal balance of each account will depend on the type on account involved.
Explanation:
The double-entry system of accounting imlpies that transactions recorded shlooud involve two movements; a corresponding debit entry for a credit entry, though some transactions have more than two entries.
However, by way of rule, a normal balance increases the account and on the opposite of that account, the amount decreases so as to obtain a balance in its rightful position.
Thus, asset accounts will have debit balances, liabilities and capital accounts will have credit balances, income account will have credit balances due to its additional effect on capital, while expenses and withdrawals will have debit balances because they reduce capital.
Answer:
"What clothing brands do you usually prefer?"
Explanation:
The retail salesman will infer if the customer likes expensive or cheap brands as this person is trained to know the difference in prices of all the brands that the branch sells.
Investors would be the answer
