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2 years ago

Would you use Real GDP or Nominal GDP to accurately calculate growth in 2011? Explain in three to four sentences.

1 answer:

3 0

You would want to use Real GDP because it looks at the inflation and deflation due to price "changes" over the years. Nominal GDP only looks at the current market of today's economy. So with this being said you only want to use Real GDP if your looking back at the economy's history, but you would look at Nominal GDP if you wanted to know the current economy status.

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Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.

astra-53 [7]

Answer:

Explanation:

please find the attached for the full explanation of the answer.

before answering the total current assets that will be recorded by Symphony one needs to understand what a current asset is. A current asset can be referred to a short term meaning that its span of life is short it can not be longer than 12 months hence current.

we also need to explain an asset: an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies

Download docx

5 0

3 years ago

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides

alexandr1967 [171]

The correct answer is B.

7 0

3 years ago

A company's interest expense is $15,000. Its income before interest expense and income taxes is $86,250. Its net income is $31,9

den301095 [7]

Answer:

b. 5.75

Explanation:

Times Interest earned ratio is the measure of ability of a company to pay the interest on its debts. It is the ratio of earning before interest and tax and interest expense as below.

Times Interest Earned Ratio = Earning before interest and tax / Interest Expense

Times Interest Earned Ratio = $86,250 / $15,000

Times Interest Earned Ratio = 5.75 times

5 0

3 years ago

Read 2 more answers

Cartels control the production and pricing of goods mainly through

Lubov Fominskaja [6]

Answer:

the elimination of competition

Explanation:

8 0

2 years ago

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes

NemiM [27]

Based on the amount it would cost to build the machine and the interest rate as well as the payoff, the following are true:

A. $333
B. $667

a. The machine will take a year to build which means the payoff will only start coming in next year.

First find the present value of the perpetuity:

= 70 / 5%

= $1,400

You then need to find the present value of the above in the current period:

= 1,400 / ( 1 + 5%)

= $1,333

NPV is:

= 1,333 - 1,000 cost

= $333

B. If the amount produced increases by 1%, you should use the Gordon Growth Model:

<em>= Next payoff / ( Interest - Growth)</em>

=70/ ( 5% - 1%)

= $1,750

Take this to current year:

= 1,750 / 1.05

= $1,667

NPV will be:

= 1,667 - 1,000

= $667

Find out more about NPV at brainly.com/question/7254007.

3 0

2 years ago