how does inflation and deflation affect economic growth

Answers

Answer 1

Answer:

Inflation affects growth by changing the labor supply and demand, and thus reducing aggregate employment in the sector that is subject to increasing returns. The reduction in the level of employment will reduce the marginal productivity of capital.

If deflation is exacerbated, it can throw an economy into a deflationary spiral. This happens when price decreases lead to lower production levels, which, in turn, leads to lower wages, which leads to lower demand by businesses and consumers, which lead to further decreases in prices.


Related Questions

Woodrow Wilson's New Freedom a supported federal government ownership of railroads and utilities. b favored big business with accompanying federal regulation. c favored small enterprise, entrepreneurship, and the busting of monopolies. d was focused around working-class issues like unions and minimum-wage laws. e opposed banking and tariff reform.

Answers

Answer:

C.

Explanation:

Favored small enterprise

Either Worker A or Worker B will produce $20,000 of output for Employer X (who only needs one worker). Worker A could produce $12,000 worth of goods elsewhere (this is Worker A's best alternative); Worker B could produce $15,000 worth of goods elsewhere (this is Worker B's best alternative). Which of the following (if they occur) is not Pareto Efficient in the sense that gainers cannot compensate losers for their losses?

A) Employer X hires Worker A for $14,000.
B) Employer X hires Worker A for $18,000.
C) Employer X hires Worker A for $5,000.
D) Employer X hires Worker B for $18,000.

Answers

Answer: D. Employer X hires Worker B for $18,000.

Explanation:

Pareto efficiency simply means that the resources uses in an economy are allocated in the most economically efficient manner. In such scenario, no change can be made without having to make someone worse off.

Based on the information, it'll not be Pareto efficient if Employer X hires Worker B for $18,000 since Worker B could produce $15,000 worth of goods elsewhere compared to worker A who can produce $12000 worth of goods.

Information technology, especially the use of networks, can help firms lower the cost of market participation, making it worthwhile for firms to contract with external suppliers instead of using internal sources. Similarly, technology, by reducing the costs of acquiring and analyzing information, permits organizations to reduce costs because it becomes easier for managers to oversee a greater number of employees. According to agency theory, __________.

Answers

Answer:

According to agency theory, a principal's and an agent's interests do not always coincide.

Explanation:

An agency relationship is formed when "agents" (workers) are hired by a principal (owner) to carry out work for him.

However, rather than a homogeneous, profit-maximizing organization, the business is seen as a "nexus of contracts" among self-interested individuals.

Therefore, according to agency theory, a principal's and an agent's interests do not always coincide.

Eleonore and Henry form a partnership to operate a horseback-riding business. The two partners file a duly executed statement of authority indicating that only Eleonore has the authority to buy and sell horses on behalf of the partnership. James, a regular customer who was unaware of the statement of authority, asks Henry if he can buy one of the horses from the partnership. Henry agrees to sell James a horse. When Eleonore finds out about the sale, she is furious, and demands that Henry retrieve the horse from James. Is Henry's sale of the horse binding

Answers

Answer:

Yes, because Henry had authority to sell the horse

Explanation:

In the given scenario Henry had apparent authority to sell the horse.

Apparent authority is the ability of an agent to act on behalf of a principal even though this is not clearly stated out. It is as a result of a third party assuming the agent has such power.

James rightly assumed Henry had the power to sell the horse.

So the sale of the horse is binding on Eleonore.

Each of the four types of checking accounts listed in the table above offers free ATM
access.

Please explain why this free access will or will not apply in all situations when you use an ATM

Answers

yes it will
gib branliest

Based on its perceived riskiness, the annual required rate of return is 11.5% for shares of Cyberdyne Inc. The company just paid their annual dividend of $8.69 a share. Analysts predict that the dividend will grow at an annual rate of 6.1%. What is the estimated price of the stock in 5 years, using the Dividend Discount Model

Answers

Answer:

the  estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38

Explanation:

The calculation of the estimated price of the stock in 5 years is given below:

= 5th Year dividend ÷ (Required return - Growth Rate)

Dividend at year 5 should be

=Dividend at year 0 × (1 + Growth Rate)^5          

= $8.69 × (1.061)^5 ÷ (0.11.5 - 0.061)

= $216.38

Hence, the  estimated price of the stock in 5 years, using the Dividend Discount Model is $216.38

A business statistics course has 2 accounting majors, 4 finance majors, 6 marketing majors, and 8 insurance majors. Which one of the following is true if a pie chart was constructed to depict majors of students? Multiple choice question. The marketing slice would be three times as big as the accounting slice. The slice for accounting would represent 20% of the pie chart. The slice for insurance would make up more than half of the pie chart. The slice for marketing majors would be two times as big as the finance slice.

Answers

Answer: The marketing slice would be three times as big as the accounting slice.

Explanation:

The total number of majors are:

= 2 + 4 + 6 + 8

= 20 majors

The proportions of the majors are:

Accounting = 2 / 20 * 100% = 10%

Finance = 4 / 20 * 100% = 20%

Marketing = 6 / 20 = 30%

Insurance = 8 / 20 = 40%

Notice how marketing takes 30% and Accounting takes 10%.

Marketing will therefore take up three times as much slices as Accounting.

With a hollow structure, the organization Group of answer choices has a central core of key functions and outsources others to vendors who are less expensive or faster. groups activities around similar products or services. is a rigid nonadaptive structure. assembles product chunks, or modules, provided by outside contractors. is often called a horizontal organization.

Answers

Answer:

With a hollow structure, the organization

has a central core of key functions and outsources others to vendors who are less expensive or faster.

Explanation:

Organizations operating hollow structures rely on an outsourcing model.  The organization maintains its core internal processes. For non-core processes, it uses outsourcing to achieve efficiency. For hollow structures to exist and be effective, the industry in which the organizations operate must be competitive in terms of price and cost.  Again, there will be opportunities to outsource some processes to competent outside vendors.

Your younger sister is just starting high school, and 4 years from today she should be entering college. Your father plans to start a college fund for her, beginning today. He will invest $6,000 per year in a mutual fund, beginning today, and he expects to earn an annual return of 9%. What is the expected value of the college fund when your sister enters college

Answers

Answer:

$29,908.26

Explanation:

The formula for calculating future value:

FV = P (1 + r) nm

FV = Future value  

P = Present value  

R = interest rate  

m = number of compounding

N = number of years  

Present value value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow from year 0 to 3 = 6000

I = 9%

PV = 21,187.77

FV = 21,187.77 X (1,09)^4

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

In his speech the previous day, the new CEO had discussed his experience in the industry and his education. Carrie thought that the new CEO would do a great job given these characteristics, coupled with his good oratory skills and the fact that he just looked like a CEO. Carrie realized that she had been judging the new CEO in a manner consistent with the

Answers

Answer:

trait

Explanation:

Trait leadership means the personal attribute pattern that could be integrated and the same should be reflected the individual differences range also it foster the consistency leader effectiveness for different group and the organization situation

so as per the given situation, it is a trait leadership theory

The same should be considered and relevant

Why does electronic commerce benefit small firms? Without e-commerce, small firms often lack the resources to expand beyond local markets. The government has committed significant resources to encourage small firms to go online. Small firms are often "tech savvy", which allows them to embrace innovations more quickly. Large firms have complex business plans that fail to direct investment toward the Internet.

Answers

Answer:

Without e-commerce, small firms often lack the resources to expand beyond local markets.

Explanation:

In Business, e-commerce can be defined as a business model which involves the buying and selling of goods or products over the internet.

Generally, e-commerce comprises of four (4) business models and these are;

1. Business to Business (B2B).

2. Business to Consumer (B2C).

3. Business to Government (B2G).

4. Consumer to Consumer (C2C).

Without e-commerce, small firms who predominantly lack the resources to expand beyond local markets unlike larger business firm wouldn't be able to grow and develop into penetrating global markets.

The acquisition cost of a plant asset does not include multiple choice incidental costs, such as title fees, sales commissions, legal fees, and so on. repair costs resulting from damage to the plant asset while it was being unpacked. all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. costs incurred to modify or customize the new plant asset.

Answers

Answer:

The answer is ' repair costs resulting from damage to the plant asset while it was being unpacked'

Explanation:

The acquisition cost of a plant asset does not include repair costs resulting from damage to the plant asset while it was being unpacked. Why? - Because this doesn't lead to the improvement of the asset.

Acquisition costs comprise the commission paid, legal fees, cost of improving the assets and all necessary cost paid to get the assets running.

Carlos tiene $40.00 para gastar a la semana en almuerzos y copas de vinos. El precio de cada almuerzo es de $8.00 y el precio de cada copa de vino es de $4.00.

La siguiente tabla presenta la utilidad total de Carlos relacionada con los almuerzos y las copas de vinos.

Answers

Answer:

Carlos gastará $12.00 al día para almuerzos y copas de vino.

Sox Corporation purchased a 30% interest in Hack Corporation for $1,825,000 on January 1, 2021. On November 1, 2021, Hack declared and paid $2.3 million in dividends. On December 31, Hack reported a net loss of $4.4 million for the year. What amount of loss should Sox report on its income statement for 2021 relative to its investment in Hack

Answers

Answer:

the loss reported is $1,135,000

Explanation:

The computation of the amount of loss reported is shown below:

Investment cost $1,825,000  

Less: Share of Dividends received -$690,000 ($2,300,000 × 30%)  

Carrying value of investment $1,135,000  

Share of net loss $1,320,000  ($4,400,000 × 30%)

It should be limited to the carrying value of an investment

Hence, the loss reported is $1,135,000

A medical supply company made transfers of property to a state hospital after the company was insolvent. Subsequently, the company filed for bankruptcy in federal bankruptcy court. The bankruptcy trustee, acting pursuant to the federal Bankruptcy Act, sought to recover those transfers. The state hospital, refusing to comply with the trustee's request, asserted that, as a state entity, it was immune from suit by a private individual, despite a provision in the Bankruptcy Act that abrogated state immunity with respect to such transfers. Can the trustee force the state to turn over the transferred property

Answers

Answer: Yes, because Congress was acting pursuant to the Bankruptcy Clause of Article I, Section 8, Clause 4, in subjecting the state to the Bankruptcy Act.

Explanation:

Bankruptcy Clause of Article I, Section 8, Clause 4 also know as uniform rule of naturalization states to establish a uniform rule of naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States; ArtI.S8.C4.1 Naturalization Power.

The trustee can force the state to turn over the transferred property because they act on force the state to turn over the transferred property

During its 2021 fiscal year, Jacobsen Corporation reported before-tax income of $624,000. This amount does not include the following two items, both of which are considered to be material in amount: Unusual gain$204,000 Loss on discontinued operations(304,000)The company's income tax rate is 25%. Jacobsen Corporation prepares its financial statement applying International Financial Reporting Standards (IFRS). In its 2021 income statement, Jacobsen would report income from continuing operations of:

Answers

Answer:

the income from continuing operations reported is $777,000

Explanation:

The calculation fo the income from continuing operations reported is shown below:

= Before tax income + unusual gains × (1 - tax rate)

= $624,000 + $204,000 × (1 - 0.25)

= $624,000 + $153,000

= $777,000

hence, the income from continuing operations reported is $777,000

Blossom Company purchased equipment on January 1 at a list price of $100000, with credit terms 2/10, n/30. Payment was made within the discount period. Blossom paid $3000 sales tax on the equipment and paid installation charges of $1500. Prior to installation, Blossom paid $3000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment

Answers

Answer:

the total cost of the new equipment is $105,500

Explanation:

The computation of the total cost of the new equipment is given below:

Total cost of the new equipment is

= Net price + Sales tax + Installation charges + Payment for concrete slab

= [$100,000 - ($100,000 × 2%)] + $3,000 + $1,500 + $3,000

= $105,500

Hence, the total cost of the new equipment is $105,500

Zippy had cash inflows from operations of $72,500; cash outflows from investing activities of $57,000; and cash inflows from financing of $35,000. The net change in cash was:

Answers

Answer:

$50,500 increase

Explanation:

Calculation to determine what The net change in cash was:

Using this formula

Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing

Activities + Cash Flows from Financing Activities

Let plug in the formula

Net Change in Cash = $72,500 + ($57,000) + $35,000

Net Change in Cash = $50,500

Therefore The net change in cash was:$50,500 Increase

Which of the following is a disadvantage of a sole proprietorship?

Question 1 options:



A: The owner has unlimited liability for the debts of the business.




B: Proprietors are their own bosses and can work their own hours.




C: It's the least expensive type of business organization to create.




D: The owner gets to decide what to do with all of the profits made.

Answers

Answer: la D

Explanation:

The disadvantage of a sole proprietorship is The owner has unlimited liability for the debts of the business. Option A is the correct answer.

A sole proprietorship is a type of business organization where a single individual owns and operates the business. While there are advantages to this form of business, such as being your own boss and having control over the business decisions, there are also disadvantages. Option A is the correct answer.

One of the main disadvantages is unlimited liability. In a sole proprietorship, the owner is personally responsible for all debts and obligations of the business. This means that if the business incurs significant debts or legal issues, the owner's personal assets may be at risk. For example, if the business fails to repay a loan, the owner's personal assets, such as their house or savings, could be used to satisfy the debt.

Learn more about Sole Proprietorship here:

https://brainly.com/question/12913114

#SPJ2

A company needs performance targets or objectives Group of answer choices to unify the company's strategic vision and business model. to prevent lower-level organizational units from establishing their own objectives. for its operations as a whole and for each of its separate businesses, product lines, functional departments, and individual work units. because they provide parameters for the company's strategy map. to help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered.

Answers

Answer:

For its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.

Explanation:

Strategic plan

This is simply refered to as the lays out of the future direction of a company, performance targets, and strategy.

Company Mission

This simply states the purpose to which a company is set up and its present business. it answer the questions of "Who we are, what we do, and why we are here?.

The Objectives

This is simply the performance target or output to be generated by an organization. They are known as the specific goals or results that management wants to achieve. They are important at all organizational levels, from the corporate level down to the operating level.

Another word for business. ( 3 words )
Please help ASAP.

Answers

some synonyms would be marketing, work, pursuit, vocation and of course what the other person said

what are the different levels of profession​

Answers

Answer:

the different levels of profession are:

medium level profession

high level profession

Raj Patel's specialty pharmaceuticals packaging firm needs to be more agile in order to be competitive in the marketplace. Foregoing buying a full-service laboratory because of the investment and risk, Patel decides to form a ________ with a chemical firm in China that has a laboratory but lacks a packaging business. Each company brings a complementary capability to the other, allowing them to pursue mutual goals.

Answers

Answer:

strategic alliance

Explanation:

A strategic alliance in domain of business can be regarded as an arrangement between two companies

whereby the companies undertake a mutually beneficial project but even though they both undergo the project together, each of them will still retains their independence. This type of agreement can be regarded as been less complex and can be regarded as been less binding compare to a joint venture, whereby two businesses pool together resources so they can develop separate business entity.

Given the general agreement that pollution is undesirable and social welfare is increased by reducing pollution, the optimal level of pollution in a society is: Group of answer choices the level of pollution that minimizes the average total cost of producing the product that generates the pollution. the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution. the level that reduces the marginal social costs of pollution to zero. zero.

Answers

Answer:

the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Generally, it has been proven beyond reasonable doubt that pollution is undesirable to living organisms such as humans, plants and animals in an environment.

Furthermore, we know and agree that social welfare of the people living across the world is increased by reducing pollution.

Hence, the optimal level of pollution in a society is the level of pollution at which the marginal social cost of pollution is equal to the marginal social benefit of pollution.

The Real Estate Settlements and Procedures Act (RESPA) applies to: Select one: A. those parties who are indirectly related to a real estate transaction such as termite inspectors or flood insurance agents on policies not escrowed. B. installment contracts of residential property for investment. C. all first lien residential mortgages for the purchase of one to four-family homes or condominiums for investment or occupancy. D. all residential mortgages for occupancy only.

Answers

Answer:

D. all residential mortgages for occupancy only.

Explanation:

The act applies to the loan purchases, property investments and equity lines of credit. It proves brokers to give disclosure of borrowers regarding the real estate.

A company is trying to set up proper internal controls for their accounts payable/inventory purchasing system. Currently the purchase order is generated by the same person who receives the inventory. Together the purchase order and the receiving ticket are sent to accounts payable for payment. What changes would you make to improve the internal control structure

Answers

Answer: I would relieve the responsibilities of person doing both generating purchase and receiving inventory

Explanation:

Receiving inventory and generating purchase are two separate task done in the accounting sector of an organization. Their activities can be really tasking especially when the organization is big and has a lot to deal with. For this present organization, the change I will effect is to relieve the responsibilities of person doing both generating purchase and receiving inventory, and assign them to just one, either of them, then get someone else to do the other task. This makes it easier and faster for both the organization and the personnel.

The wealth effect along an aggregate-demand curve stems from the idea that a higher price level a. increases the real value of the domestic currency in foreign-exchange markets. b. decreases the real value of households' money holdings. c. decreases the real value of the domestic currency in foreign-exchange markets. d. increases the real value of households' money holdings.

Answers

Answer:

b

Explanation:

When price level increases, consumers become less wealthy and as a result, they demand less of goods and services. This would lead to a decrease in the quantity demanded.

On the other hand, if price level decreases, consumers become more wealthy and as a result, increase their demand of goods and services. This would lead to an increase in the quantity demanded.

This is why the aggregate demand curve is downward sloping

Coronado Industries uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 totaled $18000 of materials, $13000 of direct labor costs, and $8000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $12000, and the ending balance is $9000. During the year, the company completed 25 machines. How much is the cost per machine

Answers

Answer:

Cost per machine $1,680

Explanation:

The computation of the cost of the machine is given below:

Beginning work in process $12,000

Direct material $18,000

Direct labor $13,000

Overhead $8000

Less: Ending work in process -$9,000

Cost of goods manufactured $42,000

Divided by Unit 25

Cost per machine $1,680

hence,the same should be relevant

Rhonda is a procurement officer for the government and needs to hire a new plumbing company that she could pay a fixed price per year to get their services on demand. She sends out this request to a plumbing website where multiple plumbing firms respond with their prices. Rhonda will choose the lowest price offer. This is an example of what

Answers

Answer:

competitive bid.

Explanation:

This is an example of competitive bid.

When auditing accounting data, auditors focus on Group of answer choices determining if fraud has occurred. determining whether recorded information properly reflects the economic events that occurred during the accounting period. analyzing the financial information to be sure that it complies with government requirements. determining if taxable income has been calculated correctly.

Answers

Answer:

determining whether recorded information properly reflects the economic events that occurred during the accounting period.

Explanation:

Auditng is an independent examination of the financial records of an organisation to determine if the records conform if recorded information properly reflects the economic events that occurred during the accounting period.

It is used to determine if financial records accurately represent the financial position of an organisation in a given period

types of audit : external audits, internal audits, and Internal Revenue Service (IRS) audits.  

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