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Alona [7]
3 years ago
12

Suppose that a country's economy is operating at an unemployment rate 6% higher than its natural rate of unemployment. Then a(n)

__________ exists and government should _________.a. inflationary gap; increase spendingb. inflationary gap; decrease spendingc. recessionary gap; increase spendingd. recessionary gap; decrease spending
Business
1 answer:
Gala2k [10]3 years ago
5 0

Answer:

c. recessionary gap; increase spending

Explanation:

When the country's economy is operating at an unemployment rate that is higher than its natural rate of unemployment, that means a lower level of consumer demand due to the fact that more number of people don't have jobs. Which in turn implies lower production level and thus lower GDP and thus causes a recessionary gap. In order to fill this recessionary gap the government should increase spending so as to boost money into the economy which will then boost consumer demand and thereby production level will increase and in turn will fill the gap.

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An investor currently holds stock in Giggle Corporation and is considering buying stock in either Macrosoft Corporation or Facep
Ivenika [448]

Answer:

b

Explanation:

Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio

Correlation is a statistical measure used to measure the relationship that exists between two variables.

1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases. It increases the risk of the portfolio

For example, there should be a positive correlation between quantity supplied and price

When there is a positive correlation, the graph of the variables is upward sloping

2. Negative correlation :  it mean that the two variables move in different direction. If one variable increases, the other variable decreases. It decreases the risk of the portfolio

For example, there should be a negative correlation between quantity demanded and price

When there is a negative correlation, the graph of the variables is downward sloping

3. Zero correlation : there is no relationship between the variables. It decreases the risk of the portfolio

3 0
3 years ago
What is considered a liability in finance and why is it being used?
garri49 [273]

A liability is something a person or company owes, usually a sum of money. ... In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date

8 0
3 years ago
Read 2 more answers
Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in divi
lutik1710 [3]

Answer:

5.65%

Explanation:

Last year a stock of $78.00 was bought

During the period of one year $2.70 was received in dividend and inflation averaged 3.2%

Today the shares was sold for $82.20

The first step is to calculate the nominal return

= ($82.20-$78.00+$2.70)/$78.00

= 6.9/78

= 0.0885×100

= 8.85%

Therefore, the approximate real rate can be calculated as follows

= 8.85%-3.2%

= 5.65%

Hence the approximate real rate of return on this investment is 5.65%

6 0
3 years ago
The transactions of Spade Company appear below.
torisob [31]

Answer:

Please see the required journals below.

Explanation:

a. Owner's investment in business

Debit Cash $18,750

Credit Common Stock $18,750

b. Purchase of office supplies

Debit Office Supplies $544

Credit Cash $544

c. Purchase of office equipment on credit

Debit Office Equipment $10,369

Credit Accounts Payable $10,369

d. Receipt of fees for services provided to a customer

Debit Cash $2,212

Credit Fees Earned $2,212

e. Payment of office equipment purchased on credit

Debit Accounts Payable $10,369

Credit Cash $10,369

f. Fees for services provided to a customer

Debit Accounts Receivable $3,975

Credit Fees Earned $3,975

g. Payment for monthly rent

Debit Rent Expense $515

Credit Cash $515

h. Collection of partial accounts receivable in (f) above

Debit Cash $1,670

Credit Accounts Receivable $1,670

i. Withdrawal of cash for personal use

Debit Drawings account $1,100

Credit Cash $1,100

5 0
3 years ago
Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area? A. W
Anna35 [415]

Answer:

An area with younger people will have a higher demand for rentals and a lower demand for buying.- D.

4 0
3 years ago
Read 2 more answers
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