Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The CPI for this year is calculated by dividing <u>the value of all goods and services produced in the economy this year </u>using <u>this year's prices</u> by the<u> value of all goods and services produced in the economy this year</u> using <u>the base year's prices</u> and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services bought by the consumers.
<u>Explanation:</u>
GDP is the gross domestic product of a country which specifies the level of growth of the country. The value of the goods and the services of the country produced by the people of the country are all reflected in the gross domestic product of the country.
Greater the rate of GDP is of a particular country, higher would be the growth of the country. It is also used as a measure of comparison of the growth rate of the country.
Answer:
the degree of operating leverage is 5
Explanation:
The computation of the degree of operating leverage is given below:
= Contribution margin ÷ EBIT
= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)
= ($670,000 - $420,000) ÷ ($670,000 - $420,000 - $200,000)
= $250,000 ÷ $50,000
= 5
Hence, the degree of operating leverage is 5
Pay your balance each month and keep a limit
Institutional investors include PENSION PLANS.
Institutional investors are those entity which pool money together to purchase securities, real properties and other investments. Examples of institutional investors include: banks,pensions, insurance companies, hedge funds, investment advisers, mutual funds, etc.<span />
Often, products enter decline the stage of the product life cycle not due to any error in strategy but because of environmental changes.
<h3>What is product life cycle?</h3>
A product life cycle is the amount of time a product goes from being introduced into the market until it's taken off the shelves. There are four stages in a product's life cycle—introduction, growth, maturity, and decline.
<h3>What is the decline stage?</h3>
The final stage of the product life cycle (after introductory stage, growth stage and maturity stage) when sales are dropping because the original need and want have diminished or because another product innovation has been introduced.
The sales of most products will decline at some stage. This can be due to factors such as technological advances, trends, innovation or changing consumer tastes. You will know when your product reaches the decline stage of its life cycle because you will notice a significant downturn in the revenue it generates.
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