Suppose the economy is initially in long-run equilibrium. Then suppose there is an increase in military spending. According to the model of aggregate demand and aggregate supply, what happens to prices and employment in the short run

Answers

Answer 1
Answer:

Answer:

prices rise, employment rises.

Explanation:

In the starting equilibrium price, there would be more demand that result in fall in the firm inventory. Now in order to maintain the level of the inventory the firm would have to rise the production for this the firm should hire more wokers due to this the employment would rise also the wages are more paid as compared to before so it increase the production cost that results in rise in price

Therefore the above represent the answer


Related Questions

Snap On Inc has a beta of 2.67 and the expected market return is 0.19. In addition, Treasury bills (risk-free asset) are currently yielding 0.02. Find the expected return for Snap On Inc.
When advertising a test product, should test locations in particular markets be isolated from media with a far reach, such as television?
During the first five years of operations, Red Raider consulting reports net income and pays dividends as follows.Year Net Income Dividends Retained Earnings1 $1200 $500 2 1700 500 3 2100 1000 4 3200 1000 5 4400 1000 Calculate the balance of retained earnings at the end of each year.
There is a possibility of a safety hazard for a manufactured product. As yet, no claim has been made for damages, though there is a reasonable possibility that a claim will be made. If a claim is made, it is probable that damages will be paid and the amount of the loss can be reasonably estimated. This possible loss must be:
On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 235,000 September 1, 2021 $ 342,000 December 31, 2021 $ 342,000 March 31, 2022 $ 342,000 September 30, 2022 $ 235,000 Kendall borrowed $764,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,570,000 in 7% bonds payable outstanding in 2021 and 2022. Average accumulated expenditures for 2021 was:

Tim thinks his buyers are ready to make an offer. He asks, “Which one of the children gets the basement bedroom with the private entrance?” What kind of closing technique is Tim using?

Answers

I think he es using the assumptive close

Each of the following are classified as a noncash investing or financing activity except: a. retirement of debt by issuing stock
b. reissuing treasury stock
c. purchase of long-term assets by issuing bonds
d. purchase of noncash assets by issuing equity

Answers

Answer: b. reissuing treasury stock

Explanation:

Investing Activities in the Cashflow Statement refer to transactions that have to do with the buying and selling of Capital Goods such as Fixed Assets. It also refers to investments in other company bonds and stock.

Financing has to do with how the firm finances it's operations. These include long term debt and stock related transactions.

When these transactions are non-cash, it means quite rightly that no cash was exchanged and instead something else for exchanged instead of cash. For example, A non-cash Investing and Financing activity would be the purchase of long-term assets by issuing bonds.

In this question, option B being the reissuance of Treasury Stock is not a non-cash transaction. Treasury Stock is the company's own stock that it required from the market. By reissuing it, they will be doing so with cash involved. That is, people will buy the reissued shares and pay cash for them thus making it a Cash Financing Activity.

"When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate."

Answers

Answer: Bank Rate/ Discount Rate

Explanation:

The Bank Rate is the interest rate that the Fed as the country's Central Bank charges commercial banks when they borrow money from it. The loans given are usually short term in nature.

The Bank Rate is a very useful tool in Monetary Policy by the Central Bank. If the Fed for instance would like to increase Economic activity by injecting cash into the economy, they can lower the bank rate and thus encourage more banks to loan money from them which will then be loaned to the public. If the Fed wanted to decrease Economic activity, the reverse would hold true.

During March, the production department of a process operations system completed and transferred to finished goods 17,000 units that were in process at the beginning of March and 150,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 59% complete with respect to conversion. At the end of March, 34,000 additional units were in process in the production department and were 100% complete with respect to materials and 24% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.

Answers

Answer:

a)201,000 units

b) 175,167 units

Explanation:

As per the data given in the question,

Details                               Materials                                 Conversion

                               Calculation      Units                 Calculation          Units

Units completed

and transferred (150,000+17,000)×100%   167,000    (150,000+17,000)×100%    167,000

Ending WIP      34,000×100%           34,000          34,000×24%        8,160

Total units      (167,000+34,000)    201000         (167,000+8,167)   175,167

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?

Answers

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

Investments and loans base their interest calculations on one of two possible methods: the interest and the interest methods. Both methods apply three variables-the amount the interest rate, and the investment or deposit period-to the amount deposited or invested in order amount of interest. However, the two methods differ in their relationship between the variables. Assume that the variables r, n, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? FV = PV + (PV Times r Times n) FV = PV Times (1 + r)^n FV = (1 + r)^n/PV Simple interest? FV = PV + (PV Times r Times n) FV = PV/(1 Times r Times n) FV = PV - (PV Times r Times n) Identify whether the following statements about the simple and compound interest methods are true or false. The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. Laura is willing to invest $45, 000 for eight years, and is an economically rational investor. She has identified three investment alternatives (L, M, and P) that vary in their method of calculating interest and in the annual interest rate offered. Since she can only make one investment during the eight-year investment period, complete the following table and indicate whether Laura should invest in each of the investments.

Answers

  1. FV = PV Times (1 + r)^n
  2. FV = PV + (PV Times r Times n)
  3. False
  4. False
  5. True
  6. Laura should invest in investment P

Investment = L  FV = $66,485.49  Make this investment? No

Investment = M  FV = $59,400  Make this investment? No

Investment = P  FV = $77,318.37  Make this investment? Yes

Explanation:

  1. Compound interest: FV = PV Times (1 + r)^n
  2. Simple interest: FV = PV + (PV Times r Times n)
  3. The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. False
  4. After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. False
  5. All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. True

Investment = L

Interest rate and method = 5% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.05)^8

FV = 45000 * (1.05)^8

FV = 45000 * 1.477455 = $66,485.49

Make this investment? Yes / No

Investment = M

Interest rate and method = 4% simple interest

Expected Future Value, FV = PV + (PV * r * n)

FV = 45000 + (45000 * 0.04 * 8)

FV = 45000 + 14400 = $59,400

Make this investment? Yes / No

Investment = P

Interest rate and method = 7% compound interest

Expected Future Value, FV = PV (1 + r)^n

FV = 45000 (1 + 0.07)^8

FV = 45000 * (1.07)^8

FV = 45000 * 1.718186 = $77,318.37

Make this investment? Yes / No

Since she can only make one investment during the eight-year investment period, Laura should invest in investment P

Final answer:

Compound interest is calculated using the equation FV = PV  imes (1 + r)^n, and simple interest is calculated using the equation FV = PV + (PV  imes r  imes n). Compound interest allows for earning interest on any interest earned in prior periods. The future value based on compound interest can exceed the future value based on simple interest.

Explanation:

The equation that represents the calculation of a future value (FV) using compound interest is: FV = PV  imes (1 + r)^n.

The equation that represents the calculation of a future value (FV) using simple interest is: FV = PV + (PV  imes r  imes n).

The statement that the process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods is true.

The statement that after the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest is false.

The statement that all other factors being equal, both the simple interest and compound interest methods will accrue the same amount of earned interest by the end of the first year is true.

To determine whether Laura should invest in each of the investments, we need more information about the specific investment alternatives (L, M, and P) and their annual interest rates.

Learn more about Interest Calculation here:

brainly.com/question/35896917

#SPJ3

Other Questions