Suppose instead there is an inflationary gap. Explain what this means using the AD/AS model, then describe how fiscal and monetary policy can address the issue and comment on any drawbacks to this solution.

Answers

Answer 1

Inflationary gap refers to a situation where the current level of equilibrium GDP exceeds the potential GDP. It represents the amount of demand-driven inflation. An inflationary gap results from demand-side factors that increase demand in the economy beyond the ability of suppliers to accommodate the demand.

The AD/AS model illustrates an inflationary gap as a point where the aggregate demand curve intersects the short-run aggregate supply curve to the right of the long-run aggregate supply curve. The price level is rising, output is above the full-employment level, and unemployment is below its natural rate when the economy is in an inflationary gap.As a result, policymakers can use expansionary fiscal and contractionary monetary policy to combat an inflationary gap.

Fiscal policy refers to government spending and taxation. The government may either decrease spending or increase taxes to reduce aggregate demand in the economy. This contractionary fiscal policy will shift the AD curve to the left and decrease the output level. Alternatively, the central bank can employ contractionary monetary policy by increasing interest rates. The decrease in demand decreases aggregate demand and decreases the level of output.

The AD curve shifts to the left, and the equilibrium level of output falls.The primary disadvantage of these policies is that they may not be effective in reversing an inflationary gap's effects. Even if policymakers succeed in reducing aggregate demand, it may take a long time for the economy to return to full employment. Furthermore, these policies can have unintended consequences.

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Related Questions

A restaurant customer complains to the waiter person that their meal has arrived at the table cold. After apologizing to the customer, the waiter person should:

a) remove the meal and reorder immediately

b) reheat the meal immediately

c) tell the customer that other staff are to blame

d) leave the meal on the table and reorder as soon as possible

Answers

Answer:a

Explanation:

Which describes the most likely effect of the Fed lowering the discount rate on
overnight loans?
an increase in unemployment
a reduction in the inflation rate
an increase in the money supply
a decrease in the money supply

Answers

Answer:  An increase in the money supply.

Explanation:

Answer:

c

Explanation:

Graham is hiking a trail that is 512 miles long. He has hiked 358 miles so far.
Which expression shows how many miles he has left to hike? A. 512+58
B. 512+358
C. 512−58
D. 512−358

Answers

The answer is d the entire trail is 512 and he already walked 358 so 512-358

Yield management pricing is ______. Multiple choice question. setting a price a few cents or a few dollars below an even number to increase demand setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it a complex approach that continually matches demand and supply to customize the price for a service estimating the price a consumer would pay for a product, and working backward with anticipated markups to set the price for wholesalers

Answers

Answer:

a complex approach that continually matches demand and supply to customize the price for a service.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

One of the importance associated with the pricing of products is that, it improves the image of a business firm.

Yield management pricing is a complex approach that continually matches demand and supply to customize the price for a service. It is commonly used by businesses that are typically involved in tourism, hospitality, and airline services.

under gasb 39, colleges and universities are required to bring their affiliated medical organizations into their financial reports. true false

Answers

The given Statement is True. Under gasb 39, colleges and universities are required to bring their affiliated medical organizations into their financial reports.

An organization or business enterprise, is an entity—including a employer, an group, or an affiliation—comprising one or greater human beings and having a selected reason. The phrase is derived from the Greek phrase organon, which means tool or instrument, musical device, and organ.

An organization is a group of folks that paintings together, like a community affiliation, a charity, a union, or a employer. you may use the word agency to refer to group or enterprise, or to the act of forming or establishing some thing.

Company allows in gold standard utilisation of financial and human sources. It now not most effective aids inside the proper undertaking of jobs to appropriate personnel but additionally keeps tune that there is no waste of resources and efforts due to duplication of labor.

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Cash payments a business makes to stockholders are called
.

Answers

Answer:

Cash dividends are often paid on a regular basis, such as monthly or quarterly, but are sometimes one-time-only payouts, such as after a settlement. Most brokers offer a choice to accept or reinvest cash dividends. Dividend-paying companies are typically established, with stable cash flow, and beyond the growth stage.

Explanation:

give me a brainliest

You worked at one pharmacy in which every member of the team was invited to contribute ideas for improvement. At another, people were simply expected to follow orders and procedures. Based on the theory of personal causation, people in the first example were treated as _____ and people in the second were treated as ______.

Answers

You worked at one pharmacy in which every member of the team was invited to contribute ideas for improvement. At another, people were simply expected to follow orders and procedures. Based on the theory of personal causation, people in the first example were treated as origins and people in the second were treated as pawns .

By sharing information only with opinion leaders who will convey the information with their constituents.Using the six guiding principles of CERC, you may assist your organization and your community in getting ready for, responding to, and recovering from an emergency. Be first, right, credible, empathetic, encourage action, and respectful.

Why is medical science difficult to cover effectively in the media?

Unusual health occurrences are frequently overshadowed by coverage of routine issues like vaccines or mild diseases.Physicians will make recommendations and provide advice to patients they have not examined.

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What are two types of organizational structures designed to help an organization achieve its goals and objectives?

Answers

Answer:

the only one I can think I office procedure

When a firm pays out a dividend, the share price ________, and when it conducts a share repurchase at the market price, the share price ________.'

Answers

When a firm pays out a dividend, the share price stock and when it conducts a share repurchase at the market price, the share price and expenditure.

If a company's stock repurchase causes a change in stock price, arbitrage opportunities may arise.

If a company's stock repurchase causes a change in stock price, arbitrage opportunities may arise.The slang term for ownership certificates for any corporation is "stock." On the other hand, a share refers to the stock certificate of a specific corporation.

Someone is a shareholder if they possess shares in a particular company. A stock is a specific kind of financial instrument that represents the holder's ownership stake in the issuing company and is usually exchanged on stock exchanges. Corporations issue shares to raise funds to run their businesses.Ordinary and preferred stocks make up the two main stock classifications. Stocks have offered investors the most potential for growth (capital appreciation) over the long run. Investors who have already decided to hang onto their stocks for a long time.

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Does anyone’s else’s teacher do this and does not let you complete the test-

Does anyones elses teacher do this and does not let you complete the test-

Answers

No and it’s not your teacher who does that it’s your parents they have control over your internet but if your at school and it’s because your on a website that is blocked

3 Points

Annabel and Presley have both invested money in savings accounts with

APYs of 2.4%. If Annabel's account has a balance of $15,000 and Presley's

account has a balance of $18,000, how much more interest does Presley earn

than Annabel?

O

A. $360

B. $792

C. $432

D. $72

SUBM

Answers

Answer:

D

Explanation:

Annual percentage yield is a form of interest that a savings account earns on a deposit in a year ,expressed as a rate of the deposit.

To calculate the difference in the interest earned as per the question , the interest yield by the two accounts are calculated and the differences also worked out.

Annual percentage yield = 2.4 %

Annabel's account balance = 15,000

Annual yield = 2.4% * 15,000 = 360

Presley's account balance = 18,000

Annual yield = 2.4% * 18000 = 432.

Difference = 432 -360 = 70

Tina will be working at the municipal swimming pool as a lifeguard this summer. She will earn $1,000 per month (a total of $3,000 for the whole summer). Tina does not plan to work any other jobs this year.

What is Tina's gross monthly income for each of the summer months (GMI)?

Answers

If she is making $3,000 for the whole summer and her rate is $1,000, than the monthly income is $1,000.

Why does an enterprise need to listen to its customers

Answers

so they will get more customers
In order to keep the customers they currently have satisfied as well as gain new ones. The more customers they have, the more money they will make and that is the end goal.

According to the video, which qualities do Lawyers need? Select all that apply.

x mechanical skills
x aggressiveness
intelligence
x physical fitness
determination
moral and ethical integrity
people skills

According to the video, which qualities do Lawyers need? Select all that apply.x mechanical skillsx aggressivenessintelligencex

Answers

Answer:

C E F G

Explanation:

According to the video, The qualities Lawyers need, The first is intelligence, the second one was determination, moral and ethical integrity people skills.

What are skills?

A skill is the acquired capacity to move with deliberate intent and good execution, frequently in a pre-determined window of time or energy or both. Domain-general and domain-specific skills are two common categories of skills.

As, The qualities the lawyer needs in the Curveballs will probably be thrown throughout a case session, and they must be able to understand them and react accordingly.

As, The important quality, the lawyer needs is zeal for one's work. Successful attorneys nearly usually have a genuine enthusiasm for what they do as a profession.

Therefore, The right option (C, E, F, G)) is correct.

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1. Given that widgets have a price elasticity of 1.75, any increase in widget price will ___ total revenue.
A) neutralize
B) decrease
C) increase
D) none of the above

Answers

Given that widgets have a price elasticity of 1.75, any increase in widget price will B) decrease total revenue.

Which scenario will result in an increase in total revenue?

If the demand curve is elastic, raising the price will boost overall revenue. If demand is elastic, a price drop will boost overall revenue. An rise in price will result in a drop in overall revenue if demand is inelastic.

Price elasticity of demand is a notion used to quantify how sensitive consumers are to price changes. Formula for price elasticity: Ed is equal to the product of the percentage change in Qd and the price.

The quantity demanded of a product in relation to variations in the price of that product is measured by the price elasticity of demand coefficient for that good or service.

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Rick mendez bought stock for $5,000, using $2,500 of his own money and $2,500 borrowed from the broker. One month later, the stock is sold for $5,650. Interest owed to the broker is $30; brokerage commissions to buy and sell the stock totaled $300.

Answers

The rate of return earned by Rick Mendez from the stock investment is 12.8%.

What is the rate of return?

The rate of return is the gain (or loss) earned from an investment expressed as a ratio of the initial investment cost.

For instance, the rate of return is the difference between the total costs of an investment and its sales proceeds, multiplied by 100.

The investment cost of stock = $5,000

Proceeds from the sale of the stock = $5,650

Broker's finance = $2,500

Interest on borrowed funds = $30

Brokerage commissions = $300

Total brokerage finance costs = $2,830

Net proceeds after brokerage costs = $2,820 ($5,650 - $2,830)

Investment using own funds = $2,500

Gain from investments = $320 ($2,820 - $2,500)

Rate of return = 12.8% ($320/$2,500 x 100)

Thus, we can state that Rick Mendez's investment in the stock yielded a return of 12.8%.

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Question Completion:

What is the rate of return earned by Rick Mendez?

Percy’s GPA is 2. 75, so he should list it on his résumé. Please select the best answer from the choices provided T F.

Answers

The given statement that GPA of Percy is 2.75, so he should list it on his resume, is the false statement.

What is GPA?

The full name of GPA is the Grade Average Point. A GPA is the sum of all of the individual grade points earned throughout the degree program.

Graduate students are often obliged to have a certain GPA.

At the time of filling out a resume, there are several basic and necessary questions that a person should consider in order to meet the criteria that the client is searching for.

In terms of GPA, Percy's is comparable. It is not appropriate to include it on a resume unless specifically requested or required. Most of the time it isn't required, thus the given statement is false.

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Answer: False

Explanation:2.75 gpa is bad

Once sales and profits decrease for a product, the product is in the stage of the product life cycle.

Answers

Maturity. In the maturity stage, sales slow down, indicating that the market has begun to reach saturation. This is also one of the stages of the product life cycle when pricing becomes competitive.

Maturity is a measurement of the ability of an organization for non-stop development in a selected discipline (as defined in O-ISM3[dubious – discuss]). The better the adulthood, the better can be the chances that incidents or errors will lead to improvements either inside the first-class or inside the use of the sources of the area as implemented by using the business enterprise. Most maturity models check qualitatively humans/culture, tactics/systems, and items/eras. Two procedures for enforcing maturity fashions exist. With a pinnacle-down technique, which includes proposed by using Becker et al., a set variety of adulthood stages or tiers is certainly first and in addition corroborated with characteristics (normally in form of particular evaluation gadgets) that help the initial assumptions approximately how maturity evolves.

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the maximum amount that an individual can give another in a year without being subject to estate taxes is:

Answers

The IRS establishes the annual gift tax exclusion each year, which permits a taxpayer to make tax-free gifts to each recipient up to a specified amount.

Here (in 2023, $17,000) without using up any of the taxpayer's lifetime gift and estate tax exemption (in 2023, $12.92 million). By 2022, you won't often have to deal with the IRS if you give someone up to $16,000 in a single year.

This ceiling is $17,000 in 2023. You can give away up to $16,000 per in 2022 to as many people as you choose without those presents counting against your $12.06 million lifetime exemption thanks to the federal gift tax exception. (The $16,000 exclusion may be raised for inflation after 2022.)

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Explain one advantage of using retained profit as a source of finance. ​

Answers

Retained profits have several major advantages: They are cheap (though not free) – effectively the "cost of capital" of retained profits is the opportunity cost for shareholders of leaving profits in the business (i.e. the return they could have obtained elsewhere)

A massage therapist is part of what career area?
A-Personal care services
B-Therapeutic services
C-Diagnostic services
D-Support services

Answers

The answer will be b

One weakness of interactionist theory is that it overstates the influence of the economy on sports true or false?.

Answers

The statement is false, that One weakness of interactionist theory is that it overstates the influence of the economy on sports.

Interactionist Theory assumes that social order is formed by people as they interact with one another. It posits sport as a type of culture that's created through social interactions. Interactionist Theory examines how individuals shape society and are shaped by society through meaning that arises in interactions through participating in sport. Interactionist Theory views free speech and expressions as symbols that become meaningful interpretations of salient elements of our identities. Promotes and understanding of free speech and expression in sport supported the style during which individuals are allowed to meaningfully interact in sport, and define and shape sport to suit their realities. Therefore following statement is False.

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Suppose that Defenestration decides to pay a dividend of only $2 per share this year and use the remaining $2 per share to repurchase stock. If Defenestration maintains this dividend and total payout rate, then the rate at which Defenestration's dividends and earnings per share are expected to grow is closest to what?

Answers

Answer:

Missing word "Defenestration Industries plans to pay a $4.00 dividend this year and you expect that the firm's earnings are on track to grow at 5% per year for the foreseeable future. Defenestration's equity cost of capital is 13%."

P0 = dividend payout per share/ (k-g)

Where g is firms earning growth = 5% or 0.05

And k is the cost of capital = 13% or 0.13

Therefore P0 = $4 / (0.13 -0.05) = $50

But if the payout is $2 per share and $2 per share is used to repurchase stock then to get the price of the stock in one year given the current price of $50.00, dividend at $2 and the 13% cost of capital we get

$50 = $2 + X / (1.13)

Therefore x = $54.5

At a current price of $50, we can expect that Defenestration Industries stock to sell for $54.50 immediately after the firm pays the dividend in one year

Therefore the growth is (54.5 -50)/50 = 9%

A whole supermarket shelf of snack food bags is marked, "Frito-Lay." This is an example of a(n)
brand.
a. co brand
b. individual
c private
d. wholesale
e. family

Answers

A? Sounds more correct

I need help I don’t get this

I need help I dont get this

Answers

The friest answer bc she said budget

Answer:

it's C, because when you budget you are trying to save money.

Explanation:

Has the Cannabis Act changed the way we view Cannabis in
Canada?

Answers

Yes, the Cannabis Act has changed the way we view cannabis in Canada. The Cannabis Act was introduced in Canada in 2018, and it legalizes recreational cannabis use across the country.

The legalization of cannabis has created a significant shift in how Canadians view cannabis. Canadians have a more positive view of cannabis, and the stigma around cannabis has reduced, which has made people more open to discussing its use. The Cannabis Act has also helped to regulate the cannabis industry, ensuring that the quality of the product is consistent, and that consumers are aware of the risks and potential side effects of using cannabis. The Act also prohibits the sale of cannabis to minors, and it provides penalties for those who violate the regulations.Overall, the Cannabis Act has been a significant step towards changing the way we view cannabis in Canada. It has reduced the stigma around cannabis and created a more positive view of the substance. The Act has also helped to regulate the industry, ensuring that consumers have access to safe and high-quality products. The legalization of cannabis has been a positive move for Canada, and it will continue to have an impact on the country in the years to come.

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Prepaid expenses require what type of adjusting entry? Question options: Matched Accumulated Accrued Deferral

Answers

Answer:

deferral

Explanation:

Adjusting entries are when changes are made to already recorded journal entries.

Categories of adjusting entries :

accrued revenuesaccrued expensesunearned revenuesprepaid expensesdepreciation.

Prepaid expenses are payments made for services yet to be delivered.

For example, paying for a year's worth of subscription on your streaming service

Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral

Derek works at Discount Tires for 20 hours a week during the year. He earns $10.50 an hour. In a typical month, he works for 80 hours. Calculate his net monthly income below.

Gross annual income=

Answers

Net monthly income is $840/month. The gross annual income of Derrek is  $10080

Information that is given:

$10.50 an hour is his earnings.

80 hours is his working.

The calculation for the net monthly income and Gross annual income will be:

Gross income = Hourly wage x number of hours worked

Gross income = $10.50/hour x 80 hours/month

Gross income = $840/month

As no other information regarding tax or deductions are given $840/month will be the net monthly income  

To calculate his annual income will be calculated for 12 months

Gross annual income= 840 * 12

= $10080

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an important way leaders build commitment to the strategic vision is to ______.

Answers

An important way leaders build commitment to the strategic vision is to communicate. It effectively to their team. Effective communication is crucial in helping team members understand the vision and how their roles contribute to achieving it.

Leaders need to ensure that everyone is on the same page and aligned with the goals of the organization. This can be achieved through regular team meetings, one-on-one discussions, and written communication.Leaders also need to demonstrate their commitment to the vision by leading by example. They need to model the behaviors they expect from their team and show that they are fully committed to achieving the goals of the organization. This involves creating a culture that supports the strategic vision, and ensuring that everyone is aware of the importance of their roles in achieving it.
Another important way leaders can build commitment to the strategic vision is by involving their team in the planning process. This not only helps to ensure that everyone is aligned with the vision, but it also helps to create a sense of ownership and investment in the vision. When team members are involved in the planning process, they are more likely to be committed to achieving the goals they helped to set.
Overall, effective communication, leading by example, and involving the team in the planning process are all important ways leaders can build commitment to the strategic vision. By doing so, leaders can help ensure that everyone is aligned with the goals of the organization and committed to achieving them.

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Priya, a software developer at SkillThink, is instructed by her team leader to minimize interaction with other team members. However, her project manager says that interacting with other team members can provide new insights for her projects. In this scenario, Priya most likely experiences _____. Group of answer choices interpersonal conflict interrole conflict intrarole conflict

Answers

Answer:

intrarole conflict

Explanation:

A conflict can be defined as any form of disagreement that arises between two or more parties due to opposing views, opinions, or incompatibility.

In this scenario, Priya most likely experiences intrarole conflict because she was instructed by her team leader to minimize interaction with other team members to prevent her from getting new insights for her projects.

An intrarole conflict is a type of conflict that arises due to the conflict related to behaviors within a single job position or role.

Other Questions
What is an example of a gas in motion and a fluid in motion? now sir young fortinbras, of unimproved mettle hot and full, hath in the skirts of norway here and there, sharked up a list of lawles no fear shakespear Is In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 4 8 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. True O False Is In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 4 8 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. True O False Is In this market, the equilibrium hourly wage is $ and the equilibrium quantity of labor is thousand workers. Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a For each of the wages listed in the following table, determine the quantity of labor demanded, the quantity of labor supplied, and the direction of pressure exerted on wages in the absence of any price controls. Wage Labor Demanded Labor Supplied (Dollars per hour) (Thousands of workers) (Thousands of workers) Pressure on Wages 4 8 12 True or False: A minimum wage above $10 per hour is a binding minimum wage in this market. True O False 4 1/2 4 3/4jjnuhyhyhyhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh solve quadratic function3(x-5)^2-17=-5 Complete sentence with a word from the box in a random sample of 310 cars driven at low altitudes, 41 of them exceeded a standard of 10 grams of particulate pollution per gallon of fuel consumed. in an independent random sample of 95 cars driven at high altitudes, 21 of them exceeded the standard. compute the test statistic for testing if the proportion of high-altitude vehicles exceeding the standard is greater than the proportion of low-altitude vehicles exceeding the standard. Games Unlimited Inc. is considering a new game that would require an after-tax investment of $20.0 million. If the new game is well received, then the project would produce after-tax cash flows of $9.5 million a year for 3 years. However, if the market does not like the new game, then the after-tax cash flows would be only $5.4 million per year. There is a 50% probability of both good and bad market conditions. The firm could delay the project for a year while it conducts a test to determine if demand would be strong or weak. The project's after-tax cost and expected annual after-tax cash flows would be the same whether the project is delayed or not. If the WACC is 8.6%, what is the value (in thousands) of the investment timing option? Do not round intermediate calculationsa. $1,007b. $3,886c. $1,151d. $2,110e. $1,943 At the end of the Second World War United States of America shifted its position from the perimeter of a rectangle is 61 centimeters. The length is 4.1 centimeters longer then the width, w . Write and solve an equation to find the width of the rectangle What is an inelastic response to a price change? Which would you predict would be the heaviest and the lightest materials that would be good conductors of electricity? Harry and Gary have a total of 300 stickers.The ratio of the number of stickers Harry has to the ratio of the numberof stickers Gary has is in the ratio 7: 3Harry gives Gary some stickers.The ratio of the number of stickers Harry has to the ratio of the numberof stickers Gary has is now in the ratio 8: 7Work out how many stickers Harry gives to Gary.You must show all your working If f(x)=-4x^2-6x-1 and g(x)=-x^2-5x+3, find (f-g)(x). which molecules were nonpolar because all bonds were nonpolar What or who is Sutton Hoo? name one financially destructive fungi The March to the sea took place across what state? a metal used in hot water systems What is (-4,-4) reflected by x-axis?