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Varvara68 [4.7K]
3 years ago
5

When a negative supply shock hits an economy, Choose one: A. unemployment decreases and this becomes the new long-run natural ra

te of unemployment. B. unemployment decreases temporarily, but returns to the natural rate of unemployment in the long run. C. unemployment increases and this becomes the new long-run natural rate of unemployment. D. unemployment increases temporarily but returns to the natural rate of unemployment in the long run.
Business
1 answer:
ivolga24 [154]3 years ago
5 0

Shocks are unforeseen changes that cause a shift in the aggregate demand and short-run aggregate supply curve. When a negative supply shock hits an economy;

  • D. Unemployment increases temporarily but returns to the natural rate of unemployment in the long run.

When negative supply occurs, it becomes more expensive for producers to make goods perhaps due to some laws that were introduced by the government.

The effect of this on the economy could be temporary or permanent. Some economists have the notion that this shock can correct itself later especially if it is temporary.

Therefore, sentence D is an example of what can happen to an economy in the event of a negative supply shock.

Learn more here:

brainly.com/question/4277384

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b. Kaplan's total stockholders' equity decreased $57,500

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Treasury Stock debit 57,500 (-Equity)

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The company's equity decreased as well as the Assets.

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Yes its true that both companies are strategic allies.

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3 years ago
Write a 100- to 150-word initial post on the following questions:
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Because the analyst is compelled to make assumptions for model inputs, valuation research is primarily based on science with a small amount of art. Bond and stock valuation are a few further uses, along with capital budgeting. The concept that its future earnings potential, a sum of money, is worth more today than it will be later.

What is valuation analysis?

A technique called valuation analysis is used to determine the approximate value or worth of any kind of asset, including businesses, stocks, fixed-income securities, commodities, real estate, and other assets.

Because the analyst must make assumptions for model inputs, valuation analysis is primarily a scientific process but also involves certain artistic elements. An asset's worth is essentially the sum of its present value (PV) for all anticipated future cash flows.

The time value of money is used in various financial contexts, such as capital planning, bond and stock valuation. Finding what a current investment will increase to in the future is the process of determining future worth. Compounding is the term for this.

Hence, the significance of the valuation analysis is aforementioned.

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B. people respond to economic incentives.

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Economic incentive is material given by someone, that is capable of motivating the other person to behave or act in a certain way. If economic incentives come from a government, it can be in form of tax incentives, subsidies or any monetary gift in form of cash or near cash.

To the economist, human being being rational, will respond to economic incentives in various forms.

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Banks _____ the money supply because they _____ currency from circulation and place it in their vaults or deposit it at the Fede
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