1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mash [69]
3 years ago
5

Imagine that in 2019 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some ti

me. Refer to Scenario 33-2. In the short run what happens to the price level and real GDP
Business
1 answer:
V125BC [204]3 years ago
6 0

In the short-run, the effect on the price level and the real GDP is <em>a. Both the </em><em>price level </em><em>and </em><em>real GDP </em><em>rise.</em>

Since the economy is in long-run equilibrium in 2019, and the stock prices unexpectedly rise and stay high for a long time, it means that the price level does not:

  • Rise while the real GDP falls
  • Fall while the real GDP rises
  • Fall with the real GDP.

<u>Question Options</u>:

a. both the price level and real GDP rise.

b. the price level rises and real GDP falls.

c. the price level falls and real GDP rises.

d. both the price level and real GDP fall.

Thus, in the short-term of this economy both the price level and real GDP rise.

Learn more: brainly.com/question/13029724

You might be interested in
Calculate Net New Borrowing using the following information: Dividends Paid 53,000 Net Capital Spending 22,000 Net New Equity Is
nadezda [96]

Answer:

Net New Borrowing is 10,000

Explanation:

Cash available for capital spending  = Operating cash flow - Interest Paid - Dividends Paid -  Change in Net Working Capital + New Equity Issued

= 117,000 - 60,000 - 53,000 - 21,000 + 29,000

= 12,000

Net new borrowing = Net Capital Spending - Cash available for capital spending

= 22,000 - 12,000 = 10,000

8 0
3 years ago
Lindor and Sons purchased an available-for-sale investment for $800,000. The fair value of that investment is $750,000 at the en
Allushta [10]

Answer:

a. The company will recognize an unrealized holding loss.

Explanation:

An unrealised loss is defined as a decline in an asset theta is held by a business. The asset can be held until it's value appreciates to cancel out the unrealised loss. If such an asset is sold, it will now be a realised loss.

The unrealized loss of (800,000-750,000= $50,000) will be recorded in the accumulated other comprehensive income account under the equity section of the balance sheet.

Unrealised loss is also called paper loss because the loss is only recorded on paper and is not yet realised.

5 0
3 years ago
The Retained Earnings account had a beginning credit balance of $26,000. During the period, the business had a net loss $12,000,
hodyreva [135]

Answer:

$6,000

Explanation:

Data provided

Beginning credit balance = $26,000

Net loss = $12,000

Paid dividends = $8,000

The calculation of Retained Earnings account is given below:-

Retained Earnings = Beginning balance - Net loss - Dividend

= $26,000 - $12,000 - $8,000

= $26,000 - $20,000

= $6,000

So, for computing the retained earning we simply applied the above formula.

5 0
4 years ago
Rachael is the owner of a watchmaking company. She has changed the company’s marketing mix and decided that she will target weal
Phantasy [73]

Answer:

The correct answer would be, Partner with an older, well connected socialite couple to endorse the brand.

Explanation:

As Rachael is the owner of the watchmaking company and has the authority to change the marketing strategies and mixes for the brand. She decides to totally change the target market for her brand. She now focuses on old wealthy, craftsman who seek quality. So now she needs to promote her new marketing mix, to target her new market. So for this, the best strategy which she can use in support of her marketing mix would be to make an older well connected socialite couple, her partner, to promote and endorse her brand. This will help her promote her new exclusive collection and can target the old wealthy quality seekers easily.

4 0
4 years ago
The internal customer base for a fire and emergency service organization is made up of employees and members of the organization
Oksana_A [137]

The external customer base of the fire and emergency service organization include members of the public.

<h3>Who are the external customer base?</h3>

An external customer base is made up of customers of a business that are not within the organisation and do not have access to non-public information.

To learn more about external customers, please check: brainly.com/question/14565267

#SPJ1

8 0
2 years ago
Other questions:
  • What percentage of data would you predict would be between 40 and 70 and what percentage would you predict would be more than 70
    9·2 answers
  • Assume that Atlas Sporting Goods Inc. has $1,040,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn
    15·1 answer
  • The price of a basket of goods is $2000 in the U.S. If purchasing-power parity holds, and the dollar buys two units of some coun
    8·1 answer
  • Trish bought a new computer that she has been using for a few weeks. She is starting to experience pain in her wrists, back and
    11·2 answers
  • On July 14 joseph invested $12000 in a fund that was growing at 5% compound semi annually
    10·1 answer
  • As an HR specialist at a large auto manufacturer, you have noticed that many of the technicians employed by your firm are bored
    8·1 answer
  • A company purchased an asset for $2,900,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The d
    9·1 answer
  • Park Co. holds a 80% interest in San Marino Co. During 2019, San Marino sold inventory costing $1,155,000 to Park for $1,650,000
    13·1 answer
  • On January 1, 2020, Bank X makes a loan of $10,000 on a 1 year note at an interest rate of 10% to a client. How much interest re
    10·1 answer
  • any approved budget increase should be: a. added to the project contingency fund and only used as a last resort b. added to the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!