Answer:
C
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices.
If nominal GDP increases, it can be as a result of an increase in price level or an increase in output
for example,
In economy A, price in year 1 is 10 and price in year 2 is 20. Output in both years is 20
Nominal GDP in year 1 = (10 X 20) = 200
Nominal GDP in year 2 = (20 X 20) = 400
It can be seen that nominal GDP increased even though output did not increase
Assume that in economy B, price in year 1 and 2 is 10. Output in year 1 is 100 and output in year 2 is 200
Nominal GDP in year 1 = (10 x 100) = 1000
Nominal GDP in year 2 = (10 x 200) = 2000
Increase in nominal GDP in this economy is as a result of an increase in output
The correct answer is: [D]: "all of the above are correct."
_______________________________________________________
"Cyclical unemployment:
_______________________________________________________
- [A]: "has a different explanation than does the natural rate of unemployment."
- [B]: "refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment."
- [C]: "is closely associated with short-run ups and downs of economic activity."
____________________________________________________
→ So; the correct answer is:
____________________________________________________
→ Answer choice: [D]: "all of the above are correct."
____________________________________________________
Answer:
Medlock will receive $2,940
Explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
According to given data
Sales = $3,000
As the payment is made within discount period, so discount will be availed
Discount = $3,000 x 2% = $60
Now deduct the discount from due balance to calculate the amount received.
Amount Received = $3,000 - $60 = $2,940
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
Answer:
True
Explanation:
Political instability is a risk to a business. For a business to thrive, the economy should be free from political unrest or turbulence. Countries that experience political turmoils are characterized by civil unrest, violence and rooting, and industrial actions that result in low economic growth.
Political stability gives confidence to investors that their investments are protected by the government and will grow. The economy of a politically stable country can be predicted many years into the future. Many investments need a long time to break even and make returns. Political unrest cause massive destruction of properties and business. Investors in stable countries are assured of their safety and the safety of their investments.
