Crane Co. incurred research and development costs in 2021 as follows: Materials used in research and development projects $ 945000 Equipment acquired that will have alternate future uses in future research and development projects 2950000 Depreciation for 2021 on above equipment 491666 Personnel costs of persons involved in research and development projects 745000 Consulting fees paid to outsiders for research and development projects 295000 Indirect costs reasonably allocable to research and development projects 220000 $5646666 The amount of research and development costs charged to Crane's 2021 income statement should be
Answers
Answer:
The amount of research and development costs charged to Crane's 2021 income statement = $2,696,666
Explanation:
Materials used in research and development projects = $945,000
Equipment acquired that will have alternate future uses in future research and development projects = $2,950,000
Depreciation = $491,666
Personnel costs = $745,000
Consulting fees = $295,000
Indirect costs = $220,000
The amount of research and development costs charged to Crane's 2021 income statement would be:
Materials used + Depreciation for 2021 + Personnel costs + Consulting fees + Indirect costs
= $945,000 + $491,666 + $745,000 + $295,000 + $220,000
= $2,696,666
Therefore, the amount of research and development costs charged to Crane's 2021 income statement =$2,696,666
Related Questions
he financial statements of Denison Furniture Company include the following items: 2019 2018 Cash $53,500 $53,000 Short-term Investments 29,000 15,000 Net Accounts Receivable 92,000 105,000 Merchandise Inventory 162,000 142,000 Total Assets 532,000 551,000 Total Current Liabilities 235,000 215,000 Long-term Note Payable 62,000 60,000 What is the 2019 cash ratio? (Round your answer to two decimal places)
Answers
Answer:
The cash ratio is calculated by dividing cash and short-term investments by current liabilities.
Cash ratio for 2019 = (53,500 + 29,000) / 235,000 = 0.39
Rounding to two decimal places, the 2019 cash ratio is 0.39.
Explanation:
Which of the following would appear in the cash flows from investing activities section of the statement of cash flows?
a. Cash received from stock issued
b. Cash received from bonds payable
c. Depreciation expense on equipment
d. Cash paid for equipment
Answers
The correct answer is:
d. Cash paid for equipment
Cash flows from investing activities include transactions related to the acquisition or sale of long-term assets such as property, plant, and equipment. Cash paid for the purchase of equipment would be categorized as an investing activity because it involves the outflow of cash for the acquisition of a long-term asset.
LEHET ........ is the degree of responsiveness of demand to changes in the price of the commodity in question (e. own price), prices of related goods (cross price) and the income of consumers.
Answers
Answer:
handsome
Explanation:
beautifuljvc htibccy yfxhnnoln bddgjnnjkk vftnnbhhc basic
Which of the following team members would be tasked with using sales or production information to determine transportation requirements?
Transportation Manger
Delivery Truck driver
Material handler
Train Conductor
Answers
The team member responsible for determining transportation requirement is the transportation manager.
A transportation manager is the one responsible for overseeing and directing transportation-related operations in organisation.
The duty of the transportation manager include;
Direct all the activities related routing,dispatch,transporting vehicles,loading,off-loading etc.He/she communicate with the sales manager about all the information regarding customer contact,quqntity of products to be shipped etc.Supervising shipments until delivery is compleatedGet information from production department about the supply/transportation of necessary resources(raw materials etc.).
The correct option is (a) Transportation manager.
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Answer:
Transportation manager
Explanation:
Creating a Multimedia Presentation
to Demonstrate Knowledge of
Energy Careers
Student Guide
Assignment Summary
For this assignment, you will create a multimedia presentation on Energy tasks and
work environments to demonstrate understanding of these careers.
Useful references for gathering this information will be listed at the end of this
document. Your presentation should include a title slide, thirteen slides representing
tasks and work environments for specific Energy careers, and a works cited slide.
Assignment Instructions
Step 1: Gather materials and necessary information.
a) Use resources listed at the end of this document to create your multimedia
presentation for Energy careers.
b) Be sure to keep a list of your references so that you can cite them later.
c) Ask your teacher where you should save your presentation as you work on it.
Your teacher may also have specific guidelines about the file name you
should use.
Step 2: Create your title slide.
a) Begin by creating the title slide. On this slide, include the title of your
presentation, your name, your teacher’s name, and the due date of the
presentation.
b) Remember to save your work as you go.
Step 3: Provide information for Petroleum Engineers
(This is just a portion)
100PTS PLEASE
Answers
New Venture Management
1. Explain the FIVE (5) financial items calculated in order to assess the price of a business.
1. Book value
2. Replacement value
3. Liquidation value
4. Past earnings
5. Cash flow
Answers
A business valuation, otherwise called an organization valuation, is the most common way of deciding the financial worth of a business. During the valuation , all region of a business are broke down to decide its worth .
What are the Techniques for Valuation ?Book value :This is the worth of investors' value of a business as displayed on the monetary record explanation. The book esteem is determined by deducting the complete liabilities of an organization from its all out resources.
Replacement value :This is in no way, shape or form a comprehensive rundown of the business valuation strategies being used today. Different techniques incorporate substitution esteem, separation esteem, resource based valuation yet some more.
Liquidation value :Liquidation esteem is the net money that a business will get assuming its resources were sold and liabilities were taken care of today.
Past earnings :Rather than the times income strategy, the profit multiplier might be utilized to get a more precise image of the genuine worth of an organization, since an organization's benefits are a more solid mark of its monetary accomplishment than deals income is.
Cash flow :The DCF strategy for business valuation is like the profit multiplier. This strategy depends on projections of future incomes, which are acclimated to get the ongoing business sector worth of the organization.
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What is
brand personification example with food industry
Answers
Answer:
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
Explanation:
Projective Technique that asks people to think about brands as if they were people and to describe how the brands would think and feel," according to mktresearch.org.18 May 2016
1 Acts (Laws passed by a government (e.g. the Parliament of South Africa) in accordance with the Constitution of
the country
Answers
Acts, also known as laws, are legislative measures that are passed by a government in accordance with the Constitution of a country.
The process of passing an Act typically involves several stages. It begins with the proposal of a bill, which is a draft law that is presented to the legislative body. The bill goes through a series of readings and debates, during which it may be amended or revised based on input from legislators and stakeholders.
Once the bill is approved by the legislative body, it is sent for further scrutiny, such as legal review and public consultation. Finally, the bill is enacted into law by receiving formal approval, usually through the signature of the head of state or a designated authority.
Acts play a crucial role in shaping the legal framework of a country. They cover a wide range of areas, including civil rights, criminal justice, taxation, environmental protection, labor regulations, healthcare, education, and many more.
Acts provide a legal basis for the functioning of government institutions, define citizens' rights and responsibilities, establish standards for public and private conduct, and promote social order and justice.
Acts are binding and enforceable, meaning that individuals and entities within a country are obligated to comply with their provisions. Violation of an Act can result in legal consequences, such as fines, penalties, or imprisonment, depending on the nature and severity of the offense.
Acts also reflect the evolving needs and values of a society. As societal perspectives change and new challenges emerge, governments may pass new Acts or amend existing ones to address these issues. Acts can be updated and repealed over time to ensure that the legal framework remains relevant and responsive to the needs of the people.
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Explain the technique to make change in counter transactions correctly.
Answers
Answer:
The correct ways to prepare a customer's change over the counter are:
Explanation:
1. In the cash drawer, store each denomination together in a section
2. As you receive cash, straighten them out and arrange them uniformly. Let every bill be faced in the same direction.
3. Deduct the total price of goods bought from the total amount handed to you by the customer.
4. The result from the above calculation is the customer's change.
5. Peek into the cash drawer and neatly pick out the notes or bills that make up this amount.
6. Carefully replace the shifted bills or coins in the drawer.
7. Place your hands on the desk or in sight of the customer and count the change for them to see.
8. Hand it over to the customer!
Brainstorm 3 people save money and 3 ways people invest money.
Answers
Three ways that people save money and three ways that people invest money include:
Ways to save money:
In savings accounts In savings schemes within the community Money market accountsWays to invest money:
Buying stocks and bonds Investing in Mutual and Hedge Funds Buying propertyHow can we save and invest money?There are several ways of saving money and some of them include putting it into savings accounts and money market accounts in banks. These will earn some interest.
There are also ways of investing money so that you can get a higher return. Some include buying stocks or bonds issued by companies or the government. There is also buying property and earning rent, and investing in mutual funds.
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What are the business strategies a small growing company needs
Answers
Answer:
Here are 10 business strategies that a small growing company may need.
1. Market segmentation: Determine the target market and focus marketing efforts on that specific group of customers.
2. Product/service differentiation: Create a unique selling proposition (USP) that sets the company apart from its competitors.
3. Customer Relationship Management (CRM): Implement systems to manage and analyze customer interactions and data. This will help the company target its marketing efforts and improve customer retention.
4. Cost control: Focus on optimizing processes and reducing overhead costs to improve profitability.
5. Diversification: Consider opportunities to expand into new product lines or markets to increase revenue streams.
6. Strategic partnerships: Look for opportunities to partner with other companies to leverage resources, share expertise, and expand market reach.
7. Innovation: Focus on continuous improvement and developing new products/services to stay ahead of the competition.
8. Talent management: Establish a strong company culture and invest in employee training and development to attract and retain talented employees.
9. Risk management: Implement processes to identify potential risks, assess their impact, and develop plans to mitigate them.
10. Financial management: Create a sound financial plan to manage cash flow, control expenses, and reinvest profits into the growth of the company.
Dividends Per Share Oceanic Company has 30,000 shares of cumulative preferred 1% stock, $150 par and 50,000 shares of $10 par common stock. The distributed as dividends: $90,000 18,000 135,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an an Preferred Stock (dividends per share) 20Y1 20Y2 20Y3 20Y1 Common Stock (dividends per share)
Answers
Preferred stockholders stock is a type of preferred stock having a condition that says that if any dividend income have been missed in the past, the dividends owed shall be paid out to cumulative preferred owners first.
What are stockholders?Someone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations.
Under this ownership structure, they can benefit from a company's success. These benefits take the shape of rising stock prices or dividend payments from financial gains.
In contrast, when a corporation experiences a loss, the share price inevitably falls, which may result in financial losses for shareholders or portfolio reductions.
Shareholders also enjoy specific rights such as voting at shareholder meetings to approve the board directors of directors, dividend distributions, or mergers.
Annual Preferred Dividends = 10,000 shares x 3% x $150 per share
Annual Preferred Dividends = $45,000
Year 1- Preferred Stock = $4.50, Common stock = $0.45
Year 2- Preferred Stock = $1.80, Common stock = $0
Year 3- Preferred Stock = $7.20, Common stock = $1.26
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how does a persons work experience affect their pay wage?
Answers
Answer:
Up to a certain point, more experience typically translates into higher income. Similar to the last example, if the job requires someone with 10 years of expertise in a specific field and you don't satisfy those qualifications, you can find yourself working at the lower end of the wage scale.
Explanation:
Volatile price changes, technological changes, and government intervention are what type of risks?
Answers
Volatile price changes, technological changes, and government intervention are external risks that can impact a company's operations and performance.
What are Volatile price changesVolatile price changes refer to fluctuations in input or product prices, which can affect profitability and cost structure. Technological changes can introduce advancements or disrupt an industry, requiring companies to adapt to avoid becoming obsolete.
Government intervention, through regulatory changes or policies, can create uncertainties and challenges for companies, affecting operations, costs, and market access.
To mitigate these risks, companies should implement risk management strategies such as diversification, contingency planning, staying informed about market trends, investing in R&D, and engaging with government stakeholders.
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Forty-three percent of Americans use social media and other websites to voice their opinions about
television programs (the Huffington Post, November 23, 2011). Below are the results of a survey of
1364 individuals who were asked if they use social media and other websites to voice their opinions
about Television programs
Uses Social Media and Other Websites to
Voice Opinions About Television Programs
Doesn’t Use Social Media and
Other Websites to Voice
Opinions About Television
Programs
Female 395 291
Male 323 355
a. Show a joint probability table. (2 marks)
b. What is the probability a respondent is female? (2 marks)
c. What is the conditional probability a respondent uses social media and other websites to voice
opinions about television programs given the respondent is female? (3 marks)
d. Let F denote the event that the respondent is female and A denote the event that the
respondent uses social media and other websites to voice opinions about television programs.
Are events F and A independent?
Answers
Answer:
(a) 0.2896 (b) 0.5029 (c)0.5758 (d)In this case they are dependent because the gender is segregated as social media user or not as asocial media worker. the probability and variable is tied to it
Explanation:
Solution
(a)In a survey of 1,364 people, 395 were females who used social media and 232 did not. of males 232 use social media and 355 did not
To make or develop a probability table, take each group and divide their number by their total for example female that use social media is 395 of a total of 1364
395/1364 =0.2896
The probability that a woman uses social media in the survey is 0.2896
so,
A B T
Female 0.2896 0.2133 0.5029
Male 0.2368 0.2603 0.4971
Total 0.5264 0.4736 1.00
(b) To find the probability of a surveyed person being a female, we divivde the total number of females by the whole number, shown below
686/1364 = 0.5029
(c)Conditional probability is defined using the formula which is shown below:
P(A/B) = P(A∩B)/P(B)-------(1)
Where P(A∩B) is the probability of females that use social media 0.2896 and P(B) is the total female probability which is 0.5029
Now we substitute the values in the equation 1 and calculate the probability as shown below:
P(A/B) = 0.2896/0.5029 =0.5758
the conditional probability that are surveyed person is female and uses social media is 0.5758
(d) In this case they are dependent because the gender is segregated as social media user or not as asocial media worker. the probability and variable is tied to it
which of the following types of interest is never deductible on schedule a, itemized deductions? interest paid on money borrowed to buy stock for a standard investment portfolio. mortgage interest paid on a second home. personal interest paid on a car loan. points paid in advance at the time of securing a mortgage for a taxpayer's main residence.
Answers
The type of interest that is never deductible on schedule A is itemized deductions, is C) Personal interest paid on a car loan.
What goes into Schedule A ?Form 1040, the form used by U.S. taxpayers to report and pay their individual income tax, has an optional schedule called Schedule A.
A taxpayer can declare expenses for specific deductible goods, services, and contributions to the IRS in order to reduce his overall taxable income. Typical examples of this include prescription costs, mortgage payments, gifts to charities, and donations.
Only investment interest and home mortgage interest paid on a primary or secondary dwelling are tax deductible. Personal interest paid on a car loan is not allowed there.
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What is the journal entry for declaring $9000 dividend to be paid next month
Answers
The journal entry for declaring a $9,000 dividend to be paid in the coming month is:
Date Account Title Debit Credit
XX-XX-XXXX Retained earnings $9,000
Dividends Payable $9,000
How is dividend declared recorded?The Retained earnings account will be debited to show that the account is decreasing. This is because dividends are taken from the retained earnings of a company.
The dividends payable account will be credited with $9,000 to show that the company now owes its shareholders $9,000. This will then be debited next month to show payment.
In conclusion, retained earnings are debited, and dividends payable are credited.
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Suppose the price elasticity of supply for lumber is 2.4. If the price of lumber increases by 20% how much would the quantity supplied of lumber change
Answers
The quantity supplied of lumber would increase by 48% in response to a 20% increase in the price of lumber.
How to calculate by how much would the quantity supplied of lumber changeIf the price elasticity of supply for lumber is 2.4, then we can use the formula:
Elasticity of supply = percentage change in quantity supplied / percentage change in price
Solving for the percentage change in quantity supplied, we get:
Percentage change in quantity supplied = Elasticity of supply * Percentage change in price
Given that the price of lumber increases by 20%, the percentage change in price is 20%.
The percentage change in quantity supplied would be:
Percentage change in quantity supplied = 2.4 * 20% = 48%
Hence, the quantity supplied of lumber would increase by 48% in response to a 20% increase in the price of lumber.
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1. Avril deposited $800 in his bank at 1.5% for five years.
Use the simple interest formula to calculate the amount of interest Avril will earn.
Calculate the future value of her deposit.
2. Phyllis borrowed $1,000 at 2% APR for six months. Use the simple interest formula to calculate the total amount of interest Phyllis will pay if she pays $200 two months into the loan and the rest at six months.
3. James deposited $500 in his bank at 4.5% for 90 days.
Use the simple interest formula to calculate the amount of interest James will earn using exact interest.
Calculate the future value of the deposit.
4. On May 4 Ariel signed a simple discount note for $3,500 at 3 1/2% for 60 days.
Use the simple interest formula to calculate the amount of interest Ariel will pay using ordinary interest.
Calculate the proceeds she will receive on May 4.
Calculate the amount she will pay at maturity
Determine the date it will be due.
5. What is the APY (effective rate) for 16% APR compounded quarterly? Round to hundredths.
6. Louisa invested $4,500 at 4% interest compounded semiannually for two years. Calculate the future value of Louisa's investment using Exhibit 11-1 or the formula FV = P(1 + R)n.
7. Cleve wants to know how much he would need to deposit now in order to have $8,000 in five years at a rate of 6% compounding quarterly. Use Exhibit 11-2 or the formula P = FV/(1 + R)n.
8. I want to borrow $900 for 20 days from a payday loan store. The payday loan finance charge is $12 per $100 borrowed up to $400, and $10 per 100 on the amount over $400. What is the dollar amount of interest I am paying? What is the APR of this loan?
9. Using Exhibit 12-1 or the formula, calculate the future value of an ordinary annuity with a quarterly payment of $1,000 made at the end of each quarter for four years compounding quarterly at 8%.
10. Using Exhibit 12-1 or the formula, calculate the future value of an annuity due with a monthly payment of $50 made at the beginning of each month for 2.5 years compounding monthly at 6%.
Answers
Answer:
800×1.5×5 divided by 100
Explanation:
so 100can divide 800we cancel them remaining 8×1.5×5=60
ÇIBIL sCore is not the only credit Score in India.
Answers
In India, there are actually multiple credit scoring systems that are used to evaluate an individual's creditworthiness.
While the CIBIL score is certainly one of the most well-known and widely used credit scores in India, it is not the only credit score that lenders and financial institutions rely on. Other credit bureaus such as Experian, Equifax, and CRIF High Mark also offer credit scores that are used by lenders to assess the creditworthiness of borrowers.
Each credit bureau may use a slightly different methodology to calculate credit scores, which is why it's important for individuals to check their credit scores from all relevant bureaus to get a complete picture of their creditworthiness. Additionally, lenders may have their own internal credit scoring systems that take into account other factors beyond just credit history, such as income and employment status.
Therefore, it's important for individuals to be aware of all the credit scoring systems that are used in India and to regularly monitor their credit scores from multiple sources to ensure they have a comprehensive understanding of their financial standing.
By maintaining a good credit score across multiple credit bureaus, individuals can increase their chances of being approved for loans, credit cards, and other financial products with favorable terms and interest rates.
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which of the following is a good habit to protect your checking account information
Answers
Answer:
Here's a few
Explanation:
Use unique passwords for every account. You probably know that having a strong password is important.
Leverage two-factor authentication.
Be cautious of public Wi-Fi.
Update and patch your software regularly.
Install ad blockers.
Utilize features and tools provided by your bank.
What role does the invisible hand play in a firm's decision-making process - both in regard to the firm's own self-interest and also in regard to the market's natural tendency toward equilibrium (the point at which the quantity demanded equals the quantity supplied)?
Answers
Answer: The role that the invisible hand plays in a firm decision making choice is that it insures you and it helps you better understand what the product seller is selling to the customer.
Explanation:
Which of the following can help you improve your information technology skills?
O A. Determining the ethical implications of decisions
B. Accessing and interpreting data
O C. Using word-processing apps, spreadsheets, and presentation software
OD. Working with classmates on reports and presentations
O E. Forming judgements and making decisions about situations and circumstances
Answers
Answer:a
Explanation:
The statement "Measurement of ethical decision implications" is correct.
The information regarding the information technology skills is as follows:
It is the technical skills that are significant for working with technical support, development & maintenance.It sets the range that lies between installing the hardware & developing the software for troubleshooting & data analysis.Also, it measures the ethical decision implications.Therefore, all the other options are incorrect
Hence, we can conclude that The statement "Measurement of ethical decision implications" is correct.
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5. Your light bulb manufacturer pre-sells about 75% of their product. The remainder of the finished stock is stored in a warehouse that they own. There
loss to the warehouse and all the unsold finished stock is destroyed. How is this covered?
Manufacturers Selling Price Endorsement
Business Income
Commercial Property
Contingent Business Interruption
4
Answers
The coverage for the loss of the warehouse and unsold finished stock would typically fall under the Commercial Property insurance policy. The correct option is C.
Commercial property insurance covers physical loss or damage to a company's assets, such as its buildings, contents, and inventory. There are various coverage alternatives available for this situation within the Commercial Property policy. It's possible that the manufacturer has a policy endorsement referred to as "Manufacturers Selling Price Endorsement" or "Selling Price Endorsement." This endorsement does not cover the cost of manufacture or market value, only the loss of finished items or products at their selling price.
Thus, the ideal selection is option C.
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By comparing subsidiary accounts to schedules of accounts payable, an
accountant can
O A. prove the accounts payable accounts at the end of a period
O B. determine a company's liabilities after assets and equity
O C. indicate which vendors are the most demanding regarding
payment terms
D. identify where the company can save money on vendor goods
Answers
A comparison of the subsidiary accounts to the schedules of accounts payable will help the accountant to A. prove the accounts payable accounts at the end of a period.
What is a Subsidiary Account?A subsidiary account tracks the information of certain transactions in detail. Some of the most important subsidiary accounts include accounts receivable and accounts payable.
Thus, by comparing the subsidiary accounts to the schedules of accounts payable, an accountant proves the existence and completeness of the accounts payable balance at the end of a period.
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Given
Principal = $11,500,
Interest Rate = 10%
Time = 240 days (use ordinary interest)
Partial payments:
On 100th day, $6,000
On 180th day, $3,500
a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest cent.)
c. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
Answers
Total interest=$489.58
Balance after 100th day=$5,819.44
Balance after 180th day=$2,448.77
Final payment=$2,489.58
Compute the total interest, the balances on the 100th and 180th days as well as the final payment of the loan?
In the first place, ordinary interest means simple interest, in other words, the simple interest approach would be used in computing the interest due at every point in time.
Interest=loan balance*interest rate*number of days that interest is due/360 days
Interest on 100th day=$11,500*10%*100/360
Interest on 100th day=$319.444444
balance after 100th day=initial principal+ interest-partial payment
balance after 100th day=$11,500+$319.444444 -$6,000
balance after 100th day=$5,819.444444
Note it has been 80 days since the payment of the last interest on 100th
interest on 180th day=$5819.444444 *10%*80/360
interest on 180th day=$129.320988
balance of the loan on the 180th day=$5,819.444444+$129.320988-$3,500
balance of the loan on the 180th day=$2,448.765432
The final payment would be the balance as of the 180th day plus the interest for the last 60 days(180th-240th)
final interest=$2,448.765432*10%*60/360
final interest =$40.812757
Final payment=$2,448.765432+$40.812757
Final payment=$2,489.58
Total interest=$319.444444+$129.320988+$40.812757
Total interest=$489.58
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Which of the following is NOT one of the suggested steps for time management? a. Work on tasks in order of importance b. Identify trivial activities c. Make a list every morning d. Impression management
Answers
Answer:
d. Impression management
Explanation:
In order to effectively manage ones time, it is important make a list of tasks and to order the tasks in order of importance. This would ensure that the most important tasks are done first.
It is also important to identify trivial tasks. Trivial tasks can be identified and eliminated.
In the "Should We Fight Climate Changes Or Support Free Trade?" article, What actions have nations and organizations taken in order to address climate change and trade?
who ever answers this becomes Brainiest
Answers
Answer:
Nations and organizations have taken actions to address climate change and trade, including signing the Paris Agreement, implementing carbon pricing, setting renewable energy targets, signing green trade agreements, and establishing organizations to promote sustainable finance. The focus is on reducing carbon emissions, promoting sustainable trade practices, and transitioning to renewable energy.
1. By giving yourself a safety cushion on all sides of the vehicle you improve your ability to? 1. stop 2. maneuver 3. think 4. all of the above
Answers
Answer: 4
Explanation: All of the above
Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?A) Output will increase.B) Prices will decline.C) Unemployment will decline.D) Short-run aggregate supply will shift to the left.Reason for choosing the selected answer will be a help.
Answers
Short-run aggregate supply will shift to the right and Unemployment will decline because of the automatic mechanism adjusting the economy back to potential GDP. Option (c) is correct.
What do you mean by Economy?Economy is the method or system used to create, market, and purchase commodities and services in a nation or area.
Aggregate supply rises as potential GDP rises, and the AS curve moves to the right. The GDP potential line similarly moves to the right. When the money wage rate or other resource prices fluctuate, the AS curve shifts and short-run aggregate supply changes.
When equilibrium GDP is lower than potential GDP, the economy has excess capacity and workers are not being used to their full potential. This indicates that although there are open positions, there is a recessionary gap.
Therefore, Option (c) is correct. Unemployment will decline because of the automatic mechanism adjusting the economy back to potential GDP.
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