The adjusting entry for remaining of expected future warranty costs as of December 31 is $400,000.
What is a warranty?According to contract law, a warranty is a representation that is neither a requirement of the agreement nor an indefinite term; it is a term that "does not go to the terms of the matter" and which only entitles the innocent party to damages if it is breached, that is, if the warranty seems to be false or even the defaulting party fails to perform the agreement in conformance with the warranty's terms. An assurance is not a guarantee. Truly, it's only a promise. In the event that it is broken, a court order for damages may be used to enforce it. A contract's guarantee clause is a clause. Depending on the terms of the contract, a manufacturer's warranty may be applicable to a product.
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Which of the following are reasons a small business might choose the SIMPLE over a Section 401(k) plan?
A) The employer expects that it could not satisfy the Section 401(k) nondiscrimination test.
B) Because a SIMPLE is less costly to operate, it is generally the better choice if the employer is not concerned about the design constraints of the plan.
C) A Section 401(k) plan would be top heavy (benefits for key employees will exceed 60% of total benefits), and the employer wants to minimize employer contributions.
D) All of these are reasons.
The correct answer is (d), all the mention point are important for considering SIMPLE over section 401 (k).
The correct answers are:
Because a SIMPLE is less costly to operate, it is generally the better choice if the employer is not concerned about the design constraints of the plan.The employer expects that it could not satisfy the Section 401(k) nondiscrimination test.If a Section 401(k) plan would be top heavy (benefits for key employees will exceed 60% of total benefits), and the employer wants to minimize employer contributions.Retirement savings accounts known as section 401(k)s are provided by small company employers having 100 or less employees. Employees can choose to contribute a portion of their pay to the plan, and employers are required to match or non-electively contribute a significant proportion of each employee's pay.
The Internal Revenue Service (IRS) has established contribution limit caps and certain qualification restrictions for employers who want to create these plans.
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Which of the following could make it difficult for you to believe that your needs are as important as the needs of others:
A. You have developed a lot of self-respect. B. You choose your own behavior. C. You are an assertive person. D. You are often around aggressive people.
What makes it hard for you to believe that your needs are as important as anyone else's is D. You are often around aggressive people
Human needs are something that is needed by humans, or human desires that must be fulfilled, in order to achieve spiritual and physical satisfaction for their survival. This need can be in the form of goods or services. Basically every human being has their own needs which are equally important, be it primary, secondary, tertiary, physical or spiritual needs.
One of the things that causes us to be unable to recognize our own needs is that we are often around aggressive people. Aggressiveness is a behavior that often has a negative impact on oneself and others and the environment. Aggressive people will have a negative impact on us. if we are too often around them, we tend to find it difficult to know that we are just as important as other people, as well as our needs are as important as the needs of others.
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When considering the interest and influence of stakeholders impacting the success of a project, what are the common attributes of the group of stakeholder that are the basis for an effective coalition of support for the project?.
Employees are by far the most important group of stakeholders for businesses.
According to research, employees are by far the most significant stakeholder group for firms, coming out ahead of consumers, suppliers, community organisations, and notably shareholders.
Stakeholders are individuals that are interested in the results of your project. They often include project team members, managers, executives, sponsors, clients, and users.
In order to understand project restrictions and risks, key stakeholders can give requirements or constraints based on data from their sector. Stakeholder involvement and engagement will help you identify and reduce project risks.
Stakeholders frequently have an impact on decision-making, goals and objectives, operational challenges, sales, costs, and profitability in a corporation.
Owners have the biggest influence since they decide what the company does and give it the money to start and expand.
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companies that purchase ________ software can use it in their operations but cannot change the source code themselves.
Companies that purchase Proprietary software can use it in their operations but cannot change the source code themselves.
Software is a set of instructions, information, or programs accustomed operate computers and executing specific tasks. it's the alternative to hardware, that describes the physical aspects of a computer. computer code may be a generic term used to talk about applications, scripts, and programs that run on a device.
Software not only makes your element perform important tasks but, can even facilitate your business work additional efficiently. the correct software can even cause new ways in which of working. it's so a vital business plus and you ought to opt for your software rigorously in order that it matches your business needs. Your system has 3 basic sorts of software: application programs, device drivers, and in-operation systems.
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skysong realty corporation purchased a tract of unimproved land for $55,000. this land was improved and subdivided into building lots at an additional cost of $34,460. these building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. group 1 2 3 no. of lots 9 15 17 price per lot $3,000 4,000 2,400 a operating expenses for the year allocated to this project total $18.200. lots unsold at the year-end were as follows. group 1 group 2 group 3 4 lots 6 lots 1 lots at the end of the fiscal year skysong realty corporation instructs you to arrive at the net income realized on this operation to date.
Answer:
Whats the question?
Explanation:
Which of the following refers to a group of people from diverse areas within an organization who work together to focus exclusively on the development of a new product?
A. Brand manager
B.Product category manager
C.Market manager
D.Venture team
E.Product management
Product management is referring to a group of people from diverse areas within an organization who work together to focus exclusively on the development of a new product.
An entity, such as a business, institution, or association, that is made up of one or more people and serves a specific purpose is known as an organization or organization (Commonwealth English; see spelling variations).
The word is derived from the Greek word organon, which also refers to an instrument, an organ, and various tools.
There are many different legal types of organizations, such as corporations, governments, non-governmental organizations, political organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and educational institutions, among others.
An organization that simultaneously performs functions for the public good and expands commercial market activities is known as a hybrid organization.
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millie's flowers company in tulips, ohio, uses an e-commerce software program on its website to allow customers to enter their own orders for flowers that are delivered by the end of the next business day. millie's flowers follows a(n) model.
The interaction between the customer and the business is referred to as the "business to customer" model, or B2C.
B2C, or business-to-consumer,Business-to-Consumer, or B2C, refers to products or services that are sold by a company to its end users. Direct to Consumer (DTC) is also known as D2C. To put it simply, it indicates that orders are processed and dispatched straight to the final consumer. B2C marketing is essential for all companies that offer goods or services to consumers. These include eateries, pharmacies, automobile manufacturers, clothing retailers, software developers, grocery stores, and so forth. You may cut the extra expenditures of infrastructure, electricity, staffing, etc. while using a B2C eCommerce model. It significantly lowers your operational costs. With fewer personnel and resources, inventories and warehousing may be simply managed. Additionally, you may increase your reach while spending less on marketing.
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suppose that an insurance agent offers you a policy that will provide you with a yearly income of $80,000 in 30 years. what is the comparable salary today, assuming an inflation rate of 5% compounded annually? (round your answer to the nearest cent.)
The comparable salary today assuming an inflation rate of 5% compounded annually is $ 13928.8
Inflation rate :
Inflation is the rate of increase in prices over a period of time. Inflation is typically a broad measure of such as A general rise in prices or an increase in the cost of living in the country. Inflation occurs when the price of goods and services increases overall, not just for individual items. This means that today you can buy 1 euro cheaper than yesterday. In other words, inflation depreciates a currency over time.
Evaluating the comparable salary :Yearly income provided by Policy = $80000
No. of years of policy term = 30 years
Inflation rate = 6% = 0.06
Annual Salary = $80000 / (1.06)³⁰
= $ 13928.810
P=13928.8
Is yearly compounding better than monthly compounding?
However, the annual interest rate is usually higher due to compound interest. Instead of monthly payments, the amount invested he increments by 12 months. But if you can pay monthly and get the same interest rate as you pay yearly, go for it.
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before filing for bankruptcy, a consumer-debtor must receive credit counseling.
a. true
b. false
True - The Bankruptcy Code requires individuals to complete credit counseling before filing for bankruptcy, subject to certain exceptions, and requires debtor education to be completed after the bankruptcy case is filed.
Bankruptcy is a legal technique thru which humans or other entities who can not pay off debts to lenders may additionally seek alleviation from a few or all in their debts. In maximum jurisdictions, financial ruin is imposed by way of a court order, regularly initiated by means of the debtor. Bankrupt isn't always the handiest prison repute that an insolvent character might also have, and the time period financial ruin is therefore not a synonym for insolvency. The phrase financial ruin is derived from Italian banca rotta, actually that means "damaged financial institution". The time period is regularly defined as having originated in renaissance Italy, where there allegedly existed the way of life of smashing a banker's bench if he defaulted on charge so that the public should see that the banker, the owner of the bench, changed into not in a condition to maintain his commercial enterprise, despite the fact that a few dismiss this as a false etymology.
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What is the first step in checking for arithmetic errors when two column totals are not in balance?.
The first step in checking for arithmetic errors when two column totals are not in balance is to check for simple mistakes, such as transposing digits or misreading numbers.
What is the first step in checking for arithmetic errors when two column totals are not in balance?The first step in checking for arithmetic errors when two column totals are not in balance is to check for simple mistakes, such as transposing digits or misreading numbers. This is because simple mistakes are the most common type of error when doing arithmetic. If the column totals are still not in balance, then more complex mistakes, such as incorrect additions or subtractions, may be the cause.
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the cash flow statement for glassworks, inc. showed the following: operating activities generated $5,400 in cash flows, investing activities used $2,500, and financing activities used $375. what was the increase (decrease) in cash for the period?
Activities that produce income or expenses in the company's main business line are referred to as operating activities in the statement of cash flows. Receipts. Disbursements.
On a cash flow statement, what are operating activities?Cash flow from operating activities refers to the earnings a company makes through ongoing, regular business activities like creating and selling things or providing clients with services (CFO). It appears as the first section of a corporation's cash flow statement.
What does a change in cash flow mean?The bottom line of the statement is the Net Increase (Decrease) in Cash and Cash Equivalents. It is determined by adding up the cash inflows and outflows for each of the three sections of the Cash Flow Statement.
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A company needs construction equipment to complete a project over the next 20 months. The equipment costs $10,000. Instead of purchasing the equipment with a 12% note, the company leases the equipment with payments of $300 due at the end of each month. For what amount would the company record the lease liability at the beginning of the lease?.
The amount that the company would record the lease liability at the beginning of the lease is $5, 414
How to find the lease liability?When a payment is a constant amount and is made after constant periods, it is called an annuity. The lease payments on the equipment are a constant amount of $300 and happen every month. This is therefore an annuity.
The amount that would be recorded as lease liability would then be the present value of this annuity payment.
First, find the periodic rate on the note because the payments are monthly:
= 12% / 12 months in a year
= 1%
The present value of the payments and the lease liability is:
= Lease payments x Present value interest factor of annuity, 1%, 20 periods
= 300 x 18.04555
= $5, 414
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which of the following would not appear in a closing entry?
a. Salary Expense
b. Interest Income
c. Accumulated Depreciation
d. Retained Earnings
Accumulated Depreciation would not appear in a closing entry.
The Accumulative depreciation of an asset up to a certain point in its life is known as accumulated depreciation. As a counter asset account, accumulated depreciation's natural balance is a credit that lowers the asset's total value.
According to generally accepted accounting standards (GAAP), the matching principle requires that costs be allocated to the same accounting period during which the relevant revenue is realized. A firm will deduct a percentage of an asset's value through depreciation over the course of each year of its useful life. This means that the expense related to using up the asset is reported every year it is put to use and generates income in accounting standards.
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a typical measure for the risk-free rate of return is the group of answer choices prime lending rate. u.s. treasury bill rate. short-term aaa-rated bond rate. money-market rate.
A regular degree for hazard unfastened price of go back is US Treasury invoice price.
The required details for Treasury Bill in given paragraph
This is because, UST payments are sponsored through the religion of US Government , i.e. there's no default aspect within side the costs offered. Hence it's far the most secure degree to decide hazard unfastened price. Other alternatives though are near approximation to hazard unfastened price however aren't absolutely hazard unfastened , i.e. they've a minor default probability. A Treasury Bill (T-Bill) is a short-time period U.S. authorities debt duty sponsored through theTreasury Department with a adulthood of three hundred and sixty five days or less. Treasury payments are commonly offered indenominationsof $1,000. However, a few can attain a most denomination of $five million in non-aggressive bids. These securities are broadly appeared as low-hazard and steady investments.
The Treasury Department sells T-Bills all through auctions the usage of a aggressive and non-aggressive bidding process. Noncompetitive bids—additionally referred to as non-aggressive tenders—have a rate primarily based totally at the common of all of the aggressive bids received. T-Bills have a tendency to have a high tangible internet worth.
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what is the difference between a balloon loan and an amortized loan?
The balloon payment, which comes at the end of a balloon loan, is made up of a series of regular payments. A fully amortized loan, on the other hand, consists of equal payments made over the course of the loan's life.
The maximum term of a balloon loan is 20 years. An interest-only loan is one that is amortized. A debt that is amortized is repaid at the conclusion of the term. The use of balloon loans has various benefits. Borrowers can frequently access low interest rates with these loans. But since there is no assurance that the borrower will be able to refinance the loan at that same lower rate—or at all—the drawbacks frequently outweigh the benefits.
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why might a business choose to expand its market presence by adding the internet channel?
By adding the internet channel in marketing Businesses may give customers as much information
They need via the Internet and more information than they could receive from stores or catalogues.Customers can search further into web pages till they have enough knowledge to decide whether to make a purchase.What is Marketing channels?
Business owners can save time and money by utilising marketing channels rather than contacting customers directly. Because so many people use social media to look up information, a business can quickly become well-known and attract customers. Customers will give a product their unpaid endorsement if it is worthwhile.
In turn, there will be more leads and customers. More product sales will increase a brand's revenue and profitability.
Everybody who uses marketing media is responsible for their own actions. While distributors are focused on product distribution, retailers provide products to the target market.
Another unique sort of marketing channel is the dual distribution channel. Through this less common method, the manufacturer or wholesaler can connect with the end user.
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Why did businesspeople and sugar planters in louisiana initially have reservations about seceding from the union?.
Many business people were unsure about this, but trade was crucial to the state's economy since it connected markets in New Orleans with northern and international markets.
In terms of economics, a market is a grouping of structures that enable parties to exchange goods and services. These structures include institutions, procedures, social interactions, and infrastructures. While parties may exchange products and services in exchange for cash, the bulk of markets rely on sellers offering their goods or services—including labor—to clients in return for payment. In this sense, a market is the process through which prices for products and services are set. Markets make it possible to allow commerce while also distributing and allocating resources in a community. All marketable goods may be assessed and valued thanks to markets. A market emerges more or less organically or may be purposely formed by human interaction in order to enable the exchange of rights (see ownership) of services and products.
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Which Friday in November 2019 will be Black Friday?
Black Friday 2019 occurred on November 29, while Thanksgiving was on November 28, 2019.
In American slang, the Friday following Thanksgiving is referred to as "Black Friday." In the US, it traditionally signals the beginning of the holiday shopping season.
A lot of retailers open early, often as early as midnight or even on Thanksgiving, and frequently advertise heavily discounted specials.
Many people think the phrase "Black Friday" comes from the idea that companies are "in the red," or operating at a loss, until the day after Thanksgiving, when huge sales eventually enable them to generate a profit, or put them "in the black."
Although "The Day After Thanksgiving" is observed as a holiday for public servants in California and a few other places, Black Friday is not an official event in the United States. This is sometimes commemorated in place of a government holiday like Columbus Day.
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identify and briefly describe the two types of deal structures when booking a show at a venue. which one is primarily used by government owned and operated venues and why?
A 100% advance payment arrangement requires the party booking the performance to make the full price beforehand. Partial payment upfront and partial after the show.
Payment occurs when one party (such as an individual or business) freely exchanges money, its equivalent, or other valuables in exchange for another party's goods, services, or to fulfill a legal obligation. The sender of the money is referred to as the "payer," while the recipient is referred to as the "payee."
Cash, cheques, debit, credit, or bank transfers—whether made through mobile payments or another method—as well as the transfer of anything of value, such as stock, and bartering—the practice of exchanging one good or service for another—can all be used to make payments.
Although the payee is in theory free to select the payment method they will use, most regulations often require the payer to accept the legal tender of the country up to a certain maximum.
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what are two ways trade barriers hamper a firm's productive activities? multiple select question. they increase the ability to operate at full capacity. they limit imports a firm may need. quotas limit the ability to serve a country from outside locales. they raise the cost of exporting products.
The two ways trade barriers that hamper a firm's productive activities are:
They raise the cost of exporting products.
The quotas limit the ability to serve a country from outside locales.
What are trade barriers?Any law or policy, including tariffs, quotas, licenses, and other restrictions on international trade, is referred to as a trade barrier. A tariff, sometimes known as an import tax, is the most prevalent trade barrier. Due to tariffs, imported items are more expensive than domestic ones (goods produced at home). Subsidies make it less expensive to produce certain items than it would be to export them. The government places restrictions on international trade.
According to the comparative advantage theory, trade barriers hurt the world economy and lower overall economic efficiency. Tariffs and other trade restrictions raise the price of goods and services for American businesses and consumers while reducing their supply, which has resulted in lower income, fewer jobs, and decreased economic production.
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stacy is unmarried and has three children, ages 5, 8 and 12, that qualify for the child tax credit. her agi for the current year is $97,000. the amount of her child tax credit is $
Stacy is unmarried and has three children, ages 5, 8 and 12, that qualify for the child tax credit. Her AGI for the current year 2021 is $97,000. The amount of her child tax credit in 2021 is $ 9,600
Taxes are obligatory contributions levied on people or agencies through a central authority entity—whether neighborhood, regional, or national. Tax sales finance authorities activities, along with public works and offerings inclusive of roads and colleges, or applications along with Social security and Medicare.
Examples include widespread and selective income taxes, value-added taxes (VAT), taxes on any element of manufacturing or manufacturing, taxes on prison transactions, and customs or import responsibilities. fashionable income taxes are levies which might be applied to a full-size part of patron costs.
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variable compensation a. benefits a great deal from making rewards contingent upon achieving goals b. is appropriate for organizations pursuing a lowest cost strategy c. is appropriate for organizations pursuing a bargain laborer hr strategy d. is usually appropriate when employees are not required to take risks
Variable compensation benefits a great deal from making rewards contingent upon achieving goals.
What is Variable compensation?Variable compensation, also known as variable compensation, is an additional incentive to base salary that helps motivate and retain employees.Variable compensation depends on the employee's performance. Variable remuneration increases salaries when sellers meet or exceed their quotas.Examples include referral bonuses, sign-up bonuses, retention bonuses, project bonuses, etc. Referral bonuses are paid to employees who refer applicants to be hired into the organization. Variable compensation is the portion of sales compensation that is determined by the employee's performance. When employees reach their goals, they are awarded variable compensation in the form of bonuses, incentives or commissions. Base salary, on the other hand, is a fixed amount that is paid regardless of the employee's achievement of goals.To learn more about Variable compensation from the given link :
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a. january 1loaned $50,000 to cashiers of the company and received back one-year,8 percent notes.b. june 30accrued interest on the notes.c. december 31received interest on the notes. (no interest has been recorded since june 30.)d. december 31received principal on the notes. required:
The journal entries for the followings are shown below:
The journal entry will be:
a. On Jan 1 .
Loan A/c. ..Dr $50,000
Cash A/c....Cr.$50,000
Being the loan is cashed of the company
b. On June 30
Interest receivable A/c.. Dr. $2,500
Interest Revenue A/c.. .Cr. $2,500
Being interest accrued on the note
c. On Dec 31
Cash A/c.....Dr $5,000
Interest receivable Alc..Cr $2,500
Interest revenue A/c. .Cr $2,500
Being interest received on the note
d. Cash A/c...Dr $50,000
Loan A/C....Cr $50,000
Being received principal on the note, Working Note:
Interest Amount x 10% x 6/ 12
Interest $50,000 x 10% x 6/12
Interest=$2,500
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you need to have $30,750 in 5 years. you can earn an annual interest rate of 6 percent for the first 3 years, and 6.6 percent for the next 2 years. how much do you have to deposit today?
You must deposit $14887.26 today. An APR is a figure that, when presented as a percentage of the principal loan amount, sums up the annual cost of borrowing all in one go.
Find the annual rate of interest?
An APR is a figure that, when presented as a percentage of the principal loan amount, sums up the annual cost of borrowing all in one go. The APR on a loan or credit card seeks to provide a thorough picture of how much borrowing money will cost.
APR is equal to ((Fees + Interest Principal n) 3 6 5) 1 0 0), where: Principal = Loan Amount n = Number of Days in Loan Term beginaligned &textAPR = left (left (left (frac frac textFees+textInterest text Principal n right) times 365 right...
A=P(1+r/100)n is explained as follows: A=future value, P=present value, r=rate of interest, and n=time period.
30750=P*(1.06)^3*(1.066)^2*(1.073)^6 \s 30750=P*2.065524435 \s P=30750/2.065524435 \s =$14887.26 .
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bims corporation uses the weighted-average method in its process costing system. the assembly department started the month with 3,200 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. an additional 64,000 units were transferred in from the prior department during the month to begin processing in the assembly department. there were 24,000 units in the ending work in process inventory of the assembly department that were 60% complete with respect to conversion costs. what were the equivalent units for conversion costs in the assembly department for the month?
The assembly department's comparable units for conversion costs for the month are 44,640 units.
Equivalent Units (E.U.) are whole notional units that represent unfinished work and are used to divide expenses between work that is still in progress and work that has already been completed.
The calculation for the given information is given below:
But the transferred units is
= Beginning work in process inventory units + additional units - ending a career in process inventory units
= 3,200 units + 64,000 units - 24,000 units
= 43,200 units
Now the equivalent units for conversion costs equal to
= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion
= 43,200 units × 70% + 24,000 units × 60%
= 30,240 units + 14,400 units
= 44,640 units
Therefore, the equivalent units for conversion costs in the assembly department for the month are 44,640 units.
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connor runs a small business and is interested in exporting his product to ireland, but he needs some advice on the legal issues this would entail. which organization would provide him with a free initial consultation for his legal questions?
ELAN organization would provide him with a free initial consultation for his legal questions.
What is ELAN?A network of more than 60 organizations known as ELAN works to ensure that residents of London can seek information about and defend their employment rights and obligations.
ELAN supports ad hoc training while working together to support the provision of advice services through pro bono networks.
ELAN welcomes members and other organizations to exchange knowledge and solutions to help with the provision of employment advice.
Through a mentoring program, ELAN encourages the linking of volunteers with ELAN members.
ELAN participates in government consultations and coordinates initiatives with other organizations to inform the formulation of policies pertaining to workers' rights.
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which of the following statements best illustrates the distinguishing features of international investing? a) american depositary receipts are quoted in dollars and pay dividends in dollars. b) earnings per share is a measure that is easily comparable from country to country. c) when a foreign currency declines in value against the u.s. dollar, profits in the foreign currency are worth more in u.s. dollars. d) foreign securities and foreign markets often have lower standard deviations than similar securities in the united states.
when a foreign currency declines in value against the u.s. dollar, profits in the foreign currency are worth more in u.s. dollars. Investments in multinational corporations will be profitable when the dollar is weak or declines.
What does it imply when a nation stops using the dollar?A dollar deficit happens when a nation spends more US dollars on imports or other international currency obligations than it earns from exports or other international financial transactions. The ability of a nation to trade or grow can be constrained by a dollar shortage.Foreigners have a purchasing power advantage since their currencies can be used to purchase more goods abroad than they could in the United States with an equivalent amount of dollars.Investments in multinational corporations will be profitable when the dollar is weak or declines.when a foreign currency declines in value against the u.s. dollar, profits in the foreign currency are worth more in u.s. dollars.To learn more about US dollars refer to:
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in low-income nations, well-being is especially likely to be influenced by satisfaction with one's . in wealthier countries, well-being is especially likely to be related to satisfaction with social connections.
Satisfaction with one's financial situation is especially likely to have an impact on subjective well-being in less wealthy countries. Satisfaction with one's home life is especially likely to have an impact on subjective well-being in wealthy nations.
The absolute income of persons at low-income levels has a greater impact on their subjective well-being, according to a recurring theme in the economics of happiness literature. Subjective well-being is an increasing function of absolute income in our sample and analyzes the presence of adaptation and social comparison effects on subjective well-being using a large sample of people in rural areas of developing countries with relatively low-income levels. 6973 rural households from 23 nations across Asia, Africa, and Latin America make up our sample. Our sample's average total income per adult equivalent was $1555, although subjective well-being levels were similar to those in earlier studies that used cross-country data.
We highlight some of the ramifications of our major discovery before we end. There is no reason to think that subjective well-being in rural areas of poor countries should not also depend on social comparisons if subjective well-being depends partially on satisfying basic physiological demands and partially on satisfying social needs. According to the results of our study, adaptation and social comparison are significant covariates of subjective well-being, even at low levels of absolute income.
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the idea that nominal variables are heavily influenced by the quantity of money and that money is largely irrelevant for understanding the determinants of real variables is explained by the a. classical dichotomy. b. mankiw effect. c. velocity concept. d. fisher effect.
The concept that nominal variables are considerably influenced by the amount of money and that money is largely irrelevant for understanding the determinants of real variables is explained by the 'classical dichotomy'. Thus, option A 'classical dichotomy' is the correct answer.
The classical dichotomy is referred to an assumption that states, in the long run, the nominal economy is entirely separate from the real economy. This reflects that in the long run, money and nominal prices have no impacts on the real variables such as real GDP. The classical dichotomy describes that changes in the money supply have no effect on the velocity of money or the level of output.
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The real gdp of country a grew by only 1% from 2016 to 2018 while the real gdp of country b grew by 5% during that same time span. Based on the data, what can we say definitely about the two countries?.
If each country's economy grows in this way, Country B will eventually have a higher real GDP than Country A.
The market value of all the finished goods and services that nations produce and sell in a given time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently revised before being regarded as a reliable indicator due to its subjective and complicated nature. The gross domestic product (GDP) of a nation is a monetary indicator of the final goods and services—those purchased by the consumer—that were produced over a specific time period. It records all production that takes place within a nation's boundaries. We are aware that the GDP is the monetary value of all finished goods and services produced in an economy. Let's take Country B as an example, which only produces backrubs and bananas.
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