2 pros of positive word of mouth (WOM) <br> 2 cons of positive word of mouth (WOM)

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe

vaieri [72.5K]

Answer:

(a) 8%

(b) 5%

(c) 4%

Explanation:

According to the classical quantity theory of money,

Money supply × Velocity = Price Level × Real GDP

Money supply denoted by M

Velocity is denoted by V

Price level is denoted by P

Real GDP is denoted by Y

Therefore,

Change in M + Change in V = Change in P + Change in Y

Since, we know that V is constant, so V = 0

∴ Change in M = Change in P + Change in Y

(a) Nominal GDP = Price × Real GDP

Change in P + Change in Y = Change in Nominal GDP = Change in M

Change in M = 8%, it is given in the question.

Therefore, Change in Nominal GDP = 8%

(b) Change in M = Change in P + Change in Y

8% = Change in P + 3%

Change in P = 8% - 3%

= 5%

We know that change in price level is the inflation rate. Hence, the inflation rate is equal to the 5%.

(c) Real interest rate is the difference between the nominal interest rate and the inflation rate.

Real interest rate = Nominal interest rate - Inflation rate

= 9% - 5%

= 4%

6 0

3 years ago

Which one of the following statements on the remuneration of the factors of production is true?

nordsb [41]

Answer: The remuneration for natural resources is rent, as natural resources consist of all gifts of nature

Explanation:

Factors of production consists of the resources that are used to production to take place. They include land, labor, capital and the enterprise.

The remuneration for natural resources is rent, as natural resources consist of all gifts of nature.

The remuneration for labor is wages and salaries. The remuneration for capital is interest while the remuneration for entrepreneur is profit.

6 0

3 years ago

One of the problems associated with the utilitarianism is that it does not recognize that taxing those with higher incomes resul

Shalnov [3]

Answer:

taxing those with higher incomes results in less work effort.

Explanation:

In normative ethics, utilitarian ethics (utilitarianism) can be defined as a theory of morality or ethical theory that typically involves engaging in actions that facilitate pleasure, joy or happiness while completely opposing any action capable of causing harm and unhappiness.

Basically, utilitarian ethics considers an action to be right or morally correct if it produces genuine happiness or joy in the mind of a large number of people in an organization, group or society.

The three (3) main principles (axioms) of utilitarian ethics (utilitarianism) include the following;

I. The only thing with an intrinsic value is pleasure or happiness.

II. If an action promotes happiness or pleasure, then it is right; it is wrong if it causes harm or unhappiness (sadness).

III. The happiness of everyone in a group or society should count equally.

One of the problems associated with the utilitarianism is that it does not recognize that taxing those with higher incomes results in less work effort.

7 0

2 years ago

Record journal entries for the following transactions of Furniture Warehouse.

labwork [276]

Answer:

yo idek dude

Explanation:

5 0

3 years ago

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 201

Stella [2.4K]

Answer:

The answer is: A) increased by 20%

Explanation:

Buckeye's productivity for 2011 was:

productivity = 1,000 / 10 workers = 100 bottles of ginger ale per worker

Buckeye's productivity for 2012 was:

productivity = 960 / 8 workers = 120 bottles of ginger ale per worker

The difference between the productivity level of 2012 and 2011 is an increase of 20% (= (120 / 100) x 100)

6 0

3 years ago

2 pros of positive word of mouth (WOM) 2 cons of positive word of mouth (WOM)