After a prolonged period of high inflation the government of Atlantia decides to set a target of 0% inflation going forward. As the new assistant economic minister, you are tasked with critiquing this policy. Which criticism of the 0% inflation target is best supported by the economic literature

Answers

Answer 1

The best support against a 0% inflation target given by the economic literature is c. A 0% inflation target could lead to deflation.

Why is a 0% inflation target risky?

If 0% inflation is targeted, the policy might be so effective that inflation becomes negative and deflation happens.

When deflation happens, the economy will experience hardships with lower production levels that will impact other sectors of the economy.

Options for this question include:

a. It is undisputed that too little inflation interferes with the downward adjustment of real wages.

b. Moderate to high inflation is popular among consumers.

c. A 0% inflation target could lead to deflation

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Related Questions

Oil inc. and petro corporation form a joint venture to design and test petroleum storage facilities and equipment. when a dispute arises, oil files a suit against petro. the court is most likely to apply the same principles to this joint venture as it applies to group of answer choices limited liability companies. corporations. sole proprietorships. partnerships.

Answers

The court is most likely to apply the same principles to this joint venture as it applies to: D. partnerships.

What is partnerships?

Partnerships can be defined as the way in which two people or two or more enter into a business.

Since Joint venture is similar to partnership which means that the court can likely apply the same principle to both Joint venture and partnership.

Therefore the correct option D.

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. Write a paragraph (three to five sentences) to explain how your allocation of Marc and
Julian's portfolio matches their investment goals and priorities. (12 points)

Answers

Marc and Julian's in terms of investment priorities and risk tolerance, shares a lot of their portfolio to High-risk stocks and real estate.

How should Marc and Julian's portfolio shared?Marc and Julian's are said to be young people that will be liken to have High risk tolerance.They will also prioritize growth in the long run.

The priorities as shared are:

32% to High-risk stocks and bonds 24% to real estate.

This is done because this is a kind of risky investments that will bring about high returns in the long run.

17% to Mutual funds 15% to retirement and others.Cash will be 3% low risk stocks and bonds will be shared 9%.

Therefore, Marc and Julian's in terms of investment priorities and risk tolerance, shares a lot of their portfolio to High-risk stocks and real estate.

See full question below

Now it's time to help Marc and Julian allocate the investments for their portfolio. This

section is worth 28 points.

1. Marc and Julian have $30,000 they would like to invest. Based on all you know

about their investment priorities, interests, and tolerance for risk, assign each type of

investment a percentage of the $30,000. Your allocations should add up to 100%. (16

points)

Average annual rate of Recommended allocation

Type of investment return

(percentage)

Cash (includes savings

accounts and CDs) 0.5%

High-risk stocks and bonds 8 - 10%

32%

Low-risk stocks and bonds 3 - 4%

Mutual funds

5 - 7%

17%

Real estate

6 - 8%

24%

Retirement

4 - 6%

15%

2. Write a paragraph (three to five sentences) to explain how your allocation of Marc and Julian's portfolio matches their investment goals and priorities. (12 points)|

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Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discounted at 8% was $58,000. Ten annual lease payments of $8,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $53,000, and its retail fair value was $58,000. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement

Answers

Smith Co. should report $4,900 amount of interest revenue from the lease in its December 31, 2021, income statement.

What is interest revenue?

Interest revenue is the earnings that an entity receives from any investments it makes, or on debt it owns.

Explanation:- 6 month depreciation expense on leased equipment (July 1 to Dec 31) = Fair value of equipment / Estimated useful life *6/12

= $58,000/10 *6/12

= $2,900

Interest expense up to Dec 31, 2021 = (Total present value of lease payment - Lease payment on July1, 2021) *8% *6/12

= ($58,000 - $8,000) * 8% * 6/12

= $2,000

Hence, the total decrease in earnings in income statement would be $4,900( 2,900 depreciation + 2,000 interest expenses)

Therefore, the answer is $4,900.

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which is true of the influencers found among early adopters?

Answers

What is true about the influencers found among early adopters is that a. They are not focused on earning the respect of others.

Who are the influencers ?

Influencer can be regarded as those that are found in life that involve themselves in endorsements and product placement .

These people are found in different organizations and have purported expert level of knowledge , however They are not focused on earning the respect of others.

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Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash35,500
Accounts receivable43,000
Supplies3,000 Inventory63,000
Notes receivable23,000
Interest receivable0
Prepaid rent2,500
Prepaid insurance9,000
Office equipment92,000
Accumulated depreciation 34,500
Accounts payable 34,000
Salaries payable 0
Notes payable 53,000
Interest payable 0
Deferred sales revenue 3,500
Common stock 81,000
Retained earnings 36,000
Dividends7,000
Sales revenue 161,000
Interest revenue 0
Cost of goods sold85,000
Salaries expense20,400
Rent expense12,500
Depreciation expense0
Interest expense0
Supplies expense2,600
Insurance expense0
Advertising expense4,500
Totals 358,600 358,600 Information necessary to prepare the year-end adjusting entries appears below.1. Depreciation on the office equipment for the year is $10,300.2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.5. On April 1, 2021, the company paid an insurance company $6,600 for a one-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.6. $560 of supplies remained on hand at December 31, 2021.7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.Prepare closing entries.

Answers

The necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.

Journal entries

Pastina Company Adjusting entries

Debit Depreciation expenses $10,300

Credit Accumulated depreciation $10,300

Debit Wages expense $900

Credit Wages payable $900

Debit Interest expense $1,518

($50,600 × 12% × 3/12)

Credit Interest payable $1,518

Debit Interest receivable $1,373

($20,600 × 8% × 10/12)

Credit Interest revenue

Debit Prepaid insurance $4,125

($6,600 × 15/24)

Credit Insurance expense $4,125

Debit Supplies expense $340

($900 − $560)

Credit Supplies $340

Debit Sales revenue $2,300

Credit Unearned revenue $2,300

Debit Rent expense $600

Credit Prepaid rent $600

Therefore the necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.

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In a _________________________ economy, the individuals and the government share in the economic decision-making process. These groups work togther to ensure economic development.

Answers

Answer:

I believe it's Command Economy

Explanation:

The graph below represents the low-wage labor market demand curve for a U.S. city; there is also a line (MinWg) showing a $12 hourly minimum wage ordinance recently enacted by the city. Using the straight-line tool, choose two of the points shown to draw the supply curve for which the new ordinance would actually make a difference in how much workers earn.

Answers

The new ordinance will make a difference when the new wages will be binding.

How to depict the information?

It should be noted that the supply curve shows the relationship between the price and the quantity supplied.

Based on the information given, when the equilibrium wage is above the minimum wage, the ordinance won't make a difference.

On the other hand, when the equilibrium wage is below the minimum wage, it'll make a difference for the worker.

Therefore, joining the lowest of the two points will give the equilibrium.

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If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend a. a reduction in taxes, without any offsetting reduction in government expenditures. b. maintenance of a balanced budget. c. a reduction in taxes coupled with a reduction in government expenditures of equal size. d. an increase in government expenditures coupled with an increase in taxes of equal size.

Answers

The recommendation by a Keynesian economist to tackle the high rate of unemployment as the result of weak aggregate demand is A. a reduction in taxes, without any offsetting reduction in government expenditures.

What is Unemployment?

This refers to the situation where a person or group of persons are out of work or cannot find any work.

Hence, we can see that based on Keynesian concepts that would work to tackle unemployment based on the given scenario, the most likely recommendation would be option A.

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Accounts receivable are normally reported at the: Present value of future cash receipts. Current value plus accrued interest. Net realizable value which is Accounts receivables minus allowance for uncollectible. Current value less expected collection costs.

Answers

The accounts receivable are normally reported at the expected amount to be received.

What is an accounts receivable?

This refers to the amounts owed by client which is due for payment within 30 days after the sale of goods and services on credit.

In accounting, the accounts receivable are normally reported at the expected amount to be received.

Therefore, the Option E is correct.

Answers

The fish cannery will use the recycling method, regardless of who has the property rights: TRUE

What is recycling?Recycling is the process of gathering and converting resources into new goods that would otherwise be thrown away as waste. Both the environment and your community may benefit from recycling.Given situation:

"Suppose the fish cannery has the property rights to the lake, including the right to pollute it.

In this case, assuming the two firms can bargain at no cost, the fish cannery will use the recycling method, and the resort will pay the fish cannery between $300 and $800 per week.

The resort will make the most economic profit when it has property rights to a clean lake."

Therefore, the following statement "the fish cannery will use the recycling method, regardless of who has the property rights is TRUE.

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Which of the following items have elastic demand? (Remember: items that are “wants” and/or have many substitutes tend to be elastic. Items that are “needs” and/or have few substitutes tend to be inelastic.) Select all that apply.
Group of answer choices

Apple Juice

Jeans

Salt

Chicken

Gasoline

Insulin

Answers

The items that have elastic demand include A. Apple Juice, B. Jeans, and D. Chicken.

What is elastic demand?

Elastic demand means that the demand for goods changes based on economic factors like income or price.

Goods with elastic demand usually have substitutes because they are wants and not needs.

Thus the items that have elastic demand include A. Apple Juice, B. Jeans, and D. Chicken.

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In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on:

Answers

In the efficiency wage model with the efficiency wage above the market-clearing wage, the level of employment depends on: labor demand alone.

What is wages model?

Wages model is a model that stated that wages which a worker or an employee earn is based on the workforce or the amount of money available to pay the workers.

In a situation were will have wage that is above the market-clearing wage this tend to mean that the level of employment will depends on labor demand only.

Therefore the level of employment depends on: labor demand alone.

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Molly wants to start a new business in collaboration with her husband and sister-in-law. the features she is looking for in the business are as follows: least possible regulatory controls, faster decision making, and ease of organization. she also wants a business in which she will not be forced to pay off any business debts from her personal assets. which type of business ownership is best suited to her needs
a. s corporation
b. sole proprietorship
c. limited partnership
d. general partnership
e. c corporation

Answers

The type of business ownership is best suited to her needs limited partnership. Thus option (C) is correct.

What is Partnership Business?

A partnership business consists of two or more individuals who pool their resources to create a company and agree to split the risks, rewards, and losses.

Law firms, medical groups, real estate investment firms, and accountancy groups are examples of common partnership businesses.

According to the above, scenario, Molly with her husband and the sister-in- law as partners wanted to start a business. She wants faster decision making, least regulation and ease in doing business.

All the requirement of her matches with the limited partnership type of the business where the liability of all the partners are limited to their amount of investment.

Thus option (C) is correct.

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All definitions are correct except: Leverage: using other people's money. Equity buildup: As the loan is paid, the amount an investor has invested increases, thus decreasing the loan and increasing equity. Liquidity: how fast the property can be sold. Basis: an income tax term meaning how much the property is currently worth.

Answers

The definition that is not correct is that Leverage: using other people's money.

What is leverage?

When it comes to property, using leverage means borrowing money from a bank or financial institution.

Leverage is therefore not a simple matter of using other people's money, but rather using complex loan instruments from institutions.

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If you need a mortgage for a home purchase, what should your first course of action be?

Answers

We can actually deduce here that if one needs a mortgage for a home purchase, the first course of action will be: C. Visit loan officers at various lending institutions and apply for the loan.

What is mortgage?

Mortgage refers to a loan that buyers of real properties place in order to raise funds which they can use to buy real estate.

Here are the options that complete the question:

A. Create a new loan for a new fishing boat

B. Ask your credit card company for just one credit score

C. Visit loan officers at various lending institutions and apply for the loan

D. Contact people that can advocate for your character and have them write letters of recommendation.

We see that one that needs mortgage for a home purchase, will first visit loan officers at various lending institutions and apply for the loan.

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Natalie, the supervisor of a 24-hour pharmacy, schedules the work shifts of her employees. Recently, two of her senior employees had a conflict because each of them wanted both Friday and Saturday nights off. Natalie gave one employee Friday nights off and the other employee Saturday nights off. In this case, Natalie used a(n) __________ strategy to resolve the conflict.

Answers

The compromise strategy is used by Natalie to resolve the conflict between the 2 employees.

What is the compromise strategy in conflicts?

This refers to the resolving of conflict by identifying a solution that is half-satisfactory to both parties but completely satisfactory to neither.

As he give them offday on different days. then, the compromise strategy is used by Natalie to resolve the conflict between the 2 employees.

Answers

During the production era it was believed that one should produce as much as you can, because: the resources was unlimited.

What was the production era?

This was the era that started the industrial revolution in the United States. The industrial era is known for the low cost production and mass production.

People produced goods and there was market for the products hence there was profitability.

Answers

The break-even point for Lightfoot Company will a. increase from 1,000 units to 1,136 units.

What is the break-even point?

The break-even point shows the sales units or sales revenue needed so that the entity does not earn a profit or incur a loss.

At break-even point, there is not profit or loss because the total costs (fixed and variable) equal to the sales revenue.

Data and Calculations:

Selling price per unit = $55

Variable costs per unit = $30

Contribution margin per unit = $25 ($55 - $30)

Fixed costs = $25,000

Increase in variable costs per unit = 10%

New Variable costs per unit = $33 ($30 x 1.1)

New Contribution margin per unit = $22 ($55 - $33)

Break-even point in units = fixed costs/contribution margin per unit

Old break-even point in units = 1,000 units ($25,000/$25)

New break-even point in units = 1,136 units ($25,000/$22)

Thus, the break-even point for Lightfoot Company will a. increase from 1,000 units to 1,136 units.

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holding other factors constant, an increase in the capital stock ______ the real wage and ______ employment.

Answers

holding other factors constant, an increase in the capital stock increases the real wage and increases employment.

What is capital stock?

This is the authorized amount of stock that a company has the power to issue.

This tells of the maximum amount of the shares that the company can be said to have as outstanding shares.

Answers

Consumer goods satisfy wants directly, while capital goods satisfy wants indirectly.

What are capital goods and consumer goods?

Capital goods are goods that are used to produce goods and services. They cannot be consumed directly. An example is machinery. Consumer goods are goods that can be consumed directly. An example is bread.

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The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called.

Answers

The correct answer is: "Game theory"

Hope this helps :)

Which group of people ultimately determines the products that a command economy produces?.

Answers

The group of people that ultimately determines the products that a free enterprise economy produces is Consumers. Read below about Enterprise economy produces.

What is an Enterprise economy?

Enterprise economy is an economy in which people take risks when they invest their money, start new businesses, etc. Free enterprise refers to an economy where the market determines prices, products, and services rather than the government. Businesses and services are free of government control.

Therefore, the correct answer is as given above.

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abc has a $5 million liability at december 31, 2018, of which $1 million is payable in each of the next five years. abc reports the liability on the balance sheet as a:

Answers

abc should reports the liability on the balance sheet as a: $1 million current liability and a $4 million long-term liability.

Liability

The liability will appear in the balance sheet as:

Current liability (Payable)= $1 million

Long term liability=$5 million-$1 million

Long term liability=$4 million

Therefore abc should reports the liability on the balance sheet as a: $1 million current liability and a $4 million long-term liability.

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As you get older, a Target Date Fund will adjust
by...
a.
Slightly decreasing your stocks and
holding your bonds the same.
b.
Decreasing your stocks and increasing
your bonds.
c.
Increasing your stocks and decreasing
your bonds.
d.
Holding your stocks the same and
slightly increasing your bonds.

Answers

The target Date fund will adjust by holding your stocks the same and slightly increasing your bonds. Therefore the correct option is (D).

What is Target-date funds ?

Target-date funds are the funds which increases the assets for the specific time period. It is also known as exchange traded funds. Thus it is an life cycle fund wherein the allocation of the portfolio gradually becomes more cautious.

The Target Date fund will adjust by holding your stocks the same and slightly increasing your bonds. Therefore the correct option is (D).

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Sofia works for Galaxy Manufacturing Inc., where her team shares a machine and materials with another team that works a different shift. Each team is responsible for ensuring that the machine is in working order and the work area is fully stocked before handing it over to the other team at shift change. The two teams sharing a work space and machine is known as ________ interdependence. Group of answer choices complete pooled reciprocal sequential

Answers

The two teams sharing a work space and machine is known as sequential interdependence.

What is sequential interdependence?

Your team members depend on one another in predictable ways for the flow of information, tasks, and decisions when there is sequential interdependence.

It has the following features-

sequential interdependence is a type of task interdependence.The output of one person serves as the input for the following one in the chain. What the name implies is precisely that: sequential dependency. When one department or team must complete a task before another team can, it occurs.

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Wright Aircraft, Inc. Wright Aircraft is the global leading builder of long-haul jet aircraft for civilian aviation. Management expects the company to maintain its leadership for the foreseeable future. Wright is considering two projects to develop an improved engine control system to to improve fuel utilization (an important factor in airlines' aircraft purchase decisions). Cash flows due only to sales of the new system are included in Chapter 2. (Assume the projections reasonably reflect the facts of the case.) Project Lindbergh utilizes a revolutionary technology to increase fuel utilization 15%. Project Lindbergh's system can be used on all airline aircraft, whether purchased from Wright or its competitors, and on Wright's next product generation. Project Post utilizes an existing technology that promises to increase fuel utilization 5%. Project Post's system can be used on Wright aircraft only. What discount rate should you use for each project?
Project Lindbergh -(000s of $s) Chapter 1: R&D Phase Chapter 2: Launch and Commercialization Year ($7.500) ($6,000) ($3,500) ($1,500) $60,000 $125,000 $175,000 $235,000 Probability of Techical Success 35% 55% Stage Gate 1 - End of Year 2 - Satge Gate 2 - End of Year 4 Project Post (000s of $s) Year Chapter 1 Cash Flows Chapter 2: Launch and Commercialization 234 5678 ($5,500) ($3,000) ($1,500) $10,000 $20,000 $25,000 $35,000 $45,000 60% Probability of R&D Success (1 stage gate - end of Year 2)

Answers

A 25% discount rate for Project Lindbergh and 15% discount rate for Project Post are used.

How to depict the information?

The question pertains to capital budgeting and the formula used to calculate Present Value (PV) of future Cash flows is (CFt / (1+r)^t) and NPV is the sum of PV of all future cash flows from t=1 to t=8.

Also,, the probability of success is given for both projects. In the first project, it is 0.35 multiplied by 0.55 and in the second Project, it is 60%.

The NPV should be multiplied by the probability of success in order to get the expected NPV from both projects. The expected NPV of Project 2 is higher than Project 1.

Therefore, the management should go ahead with Project 2.

The missing part of the question:

Project Lindbergh utilizes a revolutionary technology to increase fuel utilization 15%. Project Lindbergh's system can be used on all airline aircraft, whether purchased from Wright or its competitors, and on Wright's next product generation. Project Post utilizes an existing technology that promises to increase fuel utilization 5%. Project Post's system can be used on Wright aircraft only. please assume a 25% discount rate for Project Lindbergh and 15% discount rate for Project Post.

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the table below reports quarterly gdp and real gdp data for the united states during the great recession, which lasted from the end of 2007 to mid-2009.

Answers

The above exercise has to do with GDP Analysis. It contains a comparison between Real GDP and nominal GDP.

What is real GDP?

Real GDP refers to a version of GDP (Gross Domestic Product) that has been adjusted for the effects of price inflation.

Thus:

From 2007 Q4 through 209 Q2, the real GDP grew by - 3.98%. This was a negative growth.

This was computed by the following formula:
% Increase = (Amount representing increase/ Original Figure) x 100

That is : ((15,134.10 -15762.00)/15,762.00)*100

= -3.98363151884

≈-3.98

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does the standard unemployment rate underestimate or overestimate the unemployment problem?

Answers

The standard unemployment rate underestimate unemployment problem.

What is unemployment?

Unemployment occurs when there are no suitable Jobs for People or individual who are willing to work.

This can be due to a decline in the economy of a country or state.

The rate of unemployment may not be easily measured because of the constant increase and decrease.

Therefore, The standard unemployment rate underestimate unemployment problem.

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What is the central problem with relativism

Answers

Answer:

The problem is, is that it centers and emphasizes around a person's differences and not similarities

Explanation:

relativism is all about the similiarities

an economic policy maker would rank a _____ shock as the least preferred type. a. positive demand b. negative demand c. positive supply d. negative supply

Answers

The negative supply shock would most likely be ranked as the least preferred type by an economic policy maker.

What is a negative supply shock?

It refers to a change in supply which resulted to a decreases output causing prices to increase.

Among other supply shock, this is least preferred type of supply shock by an economic policy maker.

Therefore, the Option D is correct.