Zero unemployment and zero inflation is not good fpr the economy because inflation is important to keep the economy running.economis t call this sustainable inflation. when there is an inflation , you know that the price will rise in the future. your money is more valuable now since the price is lower then the future thus you sped noe instead of saving. this keeps the economy running.
If unmeployment were zero that would mean no new business could start, no existing business could expand and no one is entering the labor force. shortage of labor like this would increase the wage as the existing business have to compete for the labors and if wage sgoes up then prices goes up as well: inflation.
Answer:
Marginal Propensity to Consume = 0.8
Explanation:
Marginal propensity to consume (MPC) exhibits consumer's spending behavior as to what percentage of extra dollar is spent from extra dollar of income.
MPC is calculated as Increase in consumption divided by increase in income.
MPC: Increase in consumption / increase in income: 4,000 / 5,000
MPC = 0.8
Answer:
Managerial accounting
Explanation:
Managerial accounting can be regarded as accounting practice involving identification as well as measurement and interpretation of financial information and communication of it to managers so that it can be used to achieve organization's goals. It should be noted that the The area of accounting aimed at serving the decision-making needs of internal users is Managerial accounting
