The complete question is
In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100.
B) the difference between $12.5 trillion and $12.0 trillion.
C) LAS minus SAS at a price level of 100.
D) AD1.
The Answer is option B the difference between $12.5 trillion and $12.0 trllion.
Explanation:
The inflationary gap is calculated by subtracting anticipated GDP from real GDP of the economy. The x-axis represent the national income and y-axis represent the expenditure.
It is the excess of aggregate demand over its level required to maintain full employment equilibrium in the economy. in the figure AD2 represents the aggregate demand curve.
Thus, inflationary gap when AD2 is aggregate the demand curve equals the difference between $12.5 trillion and $12.0 trillion.
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Vertical integration type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate goods going into the production of finished goods.
One method of reinvestment is diversification. A global corporation can add new revenue streams, ideally with high-profit potential, by purchasing new businesses and corporate divisions, frequently in markets with growth potential or in new markets. There are two aspects to the justification for diversification, according to Calori and Harvatopoulos (1988). First, diversification can be either defensive or aggressive depending on the nature of the strategic objective.
Spreading the risk of market contraction or being compelled to diversify when an existing products or present market direction appears to offer no more prospects for growth may be defensive considerations. Gaining new positions, seizing possibilities that offer higher profitability than those for expansion, or utilizing financial reserves over the whole amount required for expansion are all offensive motivations.
Learn more about diversification here: brainly.com/question/18647091
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Answer:
A bondholder can sell the bonds he is holding at the current market price.
Explanation:
When it occurs that bonds are called, there will no longer be interest payments on the bonds called. A bondholders then has the option to either sell the bonds he is holding at the current market price or the bonds can be tendered to receive the call price.
In addition, it is also not possible to exchange the old bonds for the new refunding bonds. By implication, any investor that needs the new bonds needs to go and buy it in the market.
Based on the explanation above, it simply means that a bondholder can sell the bonds he is holding at the current market price.