Answer:
d. less frequent price changes and decreased variability of relative prices.
Explanation:
We know that the Inflation is an increase in prices for a period of time that represent the loss in the purchasing power of the consumer. With attached to it, there would be rise in the level of the price that have the high amount of fluctuations in the price
So in the case when there is a decrease in inflation so it would have less frequent change in price and reduction in variability in relative prices as the prices would become stable
Hence, the option d is correct
An increase in money supply will increase <u>the price level, but not real GDP. </u> This is the principle of monetary neutrality.
The actual Gross Domestic Product or GDP won't change even if the money supply increases and the price level does as well since, according to the monetary neutrality, changes in the money supply have actually no impact on real variables.
Also, in principle of monetary neutrality, changes in the money supply can have a temporary impact on employment and production, which are part of real GDP or actual economic variables.
The neutrality of money, often known as neutral money, is a theory that contends that, rather than actual economic variables, changes in the money supply might have an impact on the pricing of goods and services but the economy's fundamental structure and circumstances remain unchanged.
More on classical dichotomy and monetary neutrality here: brainly.com/question/27389663
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Answer:
Variable selling costs are written-off as expenses of the accounting period.
Explanation:
In the variable costing, all variable costs are included i.e direct material cost, direct labor cost, all other variable cost i.e variable administrative expenses, variable selling cost, etc
On the other side, the absorption costing includes both types of fixed and the variable costs
So according to the given options, the second option is right because under both the costing method the variable selling cost are written as an expense for the given accounting period
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