Because deflation is so costly, some have argued that setting an inflation target at 2 percent is too low and it should be set higher, to 3 percent, especially in the economic environment of 2007-2010. Consider the impact of such an increase in the inflation target using the AS/AD framework in the short and long runs. Begin your analysis in the long-run equilibrium." Between the third & fourth quarters of '06, the housing bubble burst in the United States. Using the AS/AD framework to discuss the impact of this macroeconomic event, begin and end in the long run.

Answers

Answer 1
Answer:

Answer:

Explanation:

Considering the graph in the attached image, at point A, the economy was in the equilibrium, after an increase in the inflation target, the Ad curve will shift to the AD2. At this point the price is P* and the output is Y'. The new equilibrium is At B.

In the scenario given in the question, the worker will demand a higher wage as the real wages decline.

An increase in the wage will act as a negative supply shock and the demand curve will shift to the left i.e. SRAS2. The output will decrease and the price will increase. The new output will be at Y and equilibrium at C.

Therefore, increasing the inflation target will only increase the demand in the short run, and only increase the price in the market in the long run.


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Xenon Tech acquired a patent on January 1st, 2013, for $26,400. The patent was estimated to have a useful life of 12 years. On July 1st, 2017, the company incurred legal fees of $6,000 to successfully defend the patent in an infringement suit. How much amortization expense will Xenon Tech recognize on the Income Statement for the year ended December 31st, 2017?

Answers

Answer:

The amount that will recognize under amortization expenses is $2600.

Explanation:

The first step here would be to calculate the amortization expenses for the first 4 years of the patent, here will use straight line depreciation method,

Formula - original value of asset / useful life in years

              - $26,400 / 12

             - $2200

Now for the 4 years this amount would become $2200 x 4 = $8800

The amount of amortization for the first half of 2017 ( up to 30 June ) would be-

= half of full year expenses

= $2200 / 2

= $1100

So up to 30 June 2017, the expenses are $9900 ( $8800+$1100), So the new book value would be = $26,400 - $9900

            = $16,500

In this $16,500 we will add the amount of legal fees, so the total would be -

$16,500 + $6000

= $22,500

The next step is to divide this value by remaining useful; years which is 7.5,

$22,500 / 7.5

= $3000

Now we will divide this amount by 2 because we have to take out expense for remaining last 6 months of 2017

$3000 / 2

= $1500

Adding the expenses for first and second half of 2017 to take out total amortization expense of 2017 -

$1100 + $1500

= $2600

​Which of the following statements is most accurate? Group of answer choices ​Multimedia presentations are no longer used in the business world. Low-tech visual aids are not appropriate for the business world. ​Today's speakers rely exclusively on the use of multimedia slides in their presentations because they know that multimedia slides have no disadvantages. ​Effective speakers analyze their audience and the speaking occasion to help them determine what type of visual aid to use.

Answers

Answer:

The Correct Statement is the Second Statement. Effective speaker look consider the nature and the needs of audience and then decide the type of visual aid.

Explanation:

Multimedia slides are extremely useful, and often helps in various ways to deliver your message. There is no doubt in it.

However, you can't say multimedia slides are the "one best way" to present.

In certain cases, depending on the audience, you might not need and multimedia slide at all!

Maybe you'll just have to use your body language, act out a drama or even sing a song to convey the message to the audience.

And apart from that, it the times of technical failures, where you cannot use the computer or any electrical devices, you'll have to use traditional methods too.

Moreover, if the audience is not "tech-savvy" and are more of a traditional nature, then traditional or pen and paper based methods might just work out!

Answer:

Effective speaker look consider the nature and the needs of audience and then decide the type of visual aid.

i did this on ede 2020

Oriole Company has a new product going on the market next year. The following data are projections for production and sales: Variable costs $430000 Fixed costs $450000 ROI 16% Investment $2200000 Sales 200000 units What is the markup percentage

Answers

Answer:

The markup percentage is 40%

Explanation:

The computation of the markup percentage is shown below:

Markup percentage is

= Return on investment ÷ Total cost

= ($2,200,000 × 16%) ÷ ($430,000 + $450,000)

= $352,000 ÷ $880,000

= 40%

Hence, the markup percentage is 40%

We simply applied the above formula

And, the same is to be considered

Sales would be ignored in this case

Which of the following is not an assumption economists make when using the model of perfect competition? Group of answer choices There is easy entry and exit. Each firm sets it price equal to its average total cost. The products of each firm in a particular market are identical. Firms seek to maximize profits.

Answers

Answer:

Each firm sets it price equal to its average total cost.

Explanation:

In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :

1) manufacturers of identical products. . .

Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .  

2) the firm has a small market share that will not affect prices. . .

No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices

3)Market where there are many buyers and sellers. . .

The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.

4)There is no obstacle to entering and leaving the market. . .

That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.

5)Perfect information. . .

Every market participant knows the prices, quality and production methods.  

6) Zero transaction costs...

Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .

7) Maximizing profits. . .

In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.

As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.

Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.Scenario1-There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.2-The government has granted the U.S. Postal Service the exclusive right to deliver mail.3-A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.4-There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.

Answers

1. yes it is a competitive market because it meets all the assumptions of being a competitive market

2. no because there is no free entry in the market

3. no because there are only limited sellers in the market

4. no because the product is not homogeneous.

Explanation:

Competitive market is a kind of market which has in it various sellers involved who are selling the same kind of product that is the product in the competitive market is homogeneous in nature.

The entry and the exit of the sellers in this kind of market is not restricted and they are allowed to have free entry and exit in the market. The number of sellers is also large.

Saturn ​Motorcycle's selected accounts as of December 31​, 2018​, ​follow: Selling Expenses $10,400
Interest Revenue 1,900
Net Sales Revenue 130,000
Cost of Goods Sold 81,000
Administrative Expenses 8,500

Required:
Prepare the​ multi-step income statement for the year ended December 31​, 2018.

Answers

Solution and Explanation:

the following is the income statement for the year ending

                          Saturn motorcycle's

                               Income statement

                          year ending december 31, 2018

Particulars                                                                                    Amount

net sales revenue                                                                        130000

Less: cost of goods sold                                                                81000

gross profit                                                                                  49000

Less: operating expense:

Selling expenses                          10400

adminstartive expenses                 8500                                  

Total operating expenses                                                         18900

operating profit                                                                             30100

Non operating revenues ( expenses)

add: interest revenue                       1900

total other revenue                                                                      1900

net income                                                                                   32000

Note: every amount is in dollars

Final answer:

To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, subtract the cost of goods sold from the net sales revenue to get the gross profit. Then, add the selling expenses and administrative expenses to get the operating expenses. Finally, add the operating income and other income to get the net income.

Explanation:

To prepare the multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018, we need to include key components such as net sales revenue, cost of goods sold, selling expenses, administrative expenses, and interest revenue. Here is the breakdown:

  1. Gross Profit: Subtract the cost of goods sold from the net sales revenue. (130,000 - 81,000 = 49,000)
  2. Operating Expenses: Add selling expenses and administrative expenses. (10,400 + 8,500 = 18,900)
  3. Operating Income: Subtract operating expenses from gross profit. (49,000 - 18,900 = 30,100)
  4. Other Income: Include interest revenue. (1,900)
  5. Net Income: Add operating income and other income. (30,100 + 1,900 = 32,000)

The multi-step income statement for Saturn Motorcycle for the year ended December 31, 2018 is as follows:

Saturn Motorcycle Income Statement

Net Sales Revenue$130,000Cost of Goods Sold$81,000Gross Profit$49,000Operating Expenses$18,900Operating Income$30,100Other Income$1,900Net Income$32,000

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