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MaRussiya
2 months ago
11

The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each y

ear, using the first year as the base year. Fill in the blanks in the table, and then calculate the annual inflation rate for each year (not including the base year).
Instructions: Round your answers to 2 decimal places.

Business
1 answer:
marusya05 [3.7K]2 months ago
6 0

Response:

Year  Nominal wage  Real wage  Price level  Inflation rate

1                  $7                  $5                140             None

2                 $9                  $6                150               7.14 %

3                 $12                 $7.5             160              6.67 %

Explanation:

Note: A visual representation of the table is also provided.

The price level for Year 1 is calculated as (Nominal wage in year 1/Real wage in year 1) multiplied by 100.

Thus, Price level in Year 1 = ($7.00 / $5.00) * 100

Resulting in Price level in Year 1 = 1.4 times 100

Which gives Price level in Year 1 = 140

To find Real wage in Year 2: (Nominal wage in year 2 / Price level in year 2) multiplied by 100.

Which gives Real wage in Year 2 = ($9.00 / 150.00) * 100

Thus, Real wage in Year 2 = $6

To calculate Nominal wage in Year 3: (Real wage in Year 3 * Price level in Year 3) divided by 100.

<pthis results="" in="" nominal="" wage="" year="">

As a result, Nominal wage in Year 3 = $1,200 / 100

Leading to Nominal wage in Year 3 = $12

To determine Inflation rate in Year 2: (Price level in Year 2 - Price level in Year 1) divided by Price level in Year 1.

<phence inflation="" rate="" in="" year="">

Therefore, Inflation rate in Year 2 = 10 / 140

Giving Inflation rate in Year 2 = 0.0714, or 7.14 %

For Inflation rate in Year 3: (Price level in Year 3 - Price level in Year 2) divided by Price level in Year 2.

<pthis leads="" to="" inflation="" rate="" in="" year=""><pfinally inflation="" rate="" in="" year="" resulting="" or="">

</pfinally></pthis></phence></pthis>
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Answer

There are several motives for UPS to delve into networking technology, which include: enhancing its company visibility, securing reliable connections, fostering growth by creating positive influences, exploring new opportunities, and generating referrals

Explanation

Networking technology involves utilizing connected systems through optical cables, satellites, and wireless networks for data and communication resources across various locations to establish an information relay infrastructure. From a strategic operational perspective, networking technology can enable the company to reach a broader clientele, acquire essential business knowledge, and ultimately achieve substantial growth and increased profits over time. Currently, through networking efforts, businesses share successes and failures with one another to comprehend challenges and promote faster growth.



3 0
1 month ago
A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the costs of hav
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Explanation:

Part 1: True, the information given about the total costs incurred by the movie studio from last year shows that after the adjustments for the differences in totals

3rd movie cost - 2nd = 132-84 = 48 million

Thus, the variable costs must be at least $47 million but less than $255 million as well.

Part 2:  False, the marginal cost for producing the first movie was $45 million, while the studio produced three films during that period.

In conclusion, the variable costs for all three films last year were

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3 0
2 months ago
Harry is looking at buying a building that has a monthly income of $3,600, a 5% vacancy rate, and annual expenses of $8,640. he
harina [3808]

Result:

The amount he should pay equals = $270,000

Explanation:

The sum due for the investment represents the present value of net income, discounted at a 12% return rate.

The occupancy percentage = 100 - 5= 95%

The net income equals occupancy rate × total income - expenses

                              = 95%× 3,600× 12 - 8,640= 32400

<passuming this="" income="" continues="" indefinitely="" the="" present="" value="" of="" is="" calculated="" as="">

PV of net income = A/r

A = 32400, r = 12%

                            = 32400/0.12

                             =$270000

The amount he should pay equals = $270,000

</passuming>
6 0
2 months ago
Suppose the government introduces a $4 per unit tax on the supply of automobile tires (suppliers are responsible for submitting
marusya05 [3725]

Answer:

The right answer is: price elasticity of supply and demand.

Explanation:

A tax of $4 per unit on automobile tire supply has been enacted by the government. Suppliers are responsible for this tax. Importantly, the outcome will remain unchanged regardless of whether the burden is on the buyer or the seller. Enforcing this tax will result in a rise in the commodity's price.

The distribution of the tax burden between buyers and sellers directly correlates with demand and supply elasticity. If demand is significantly more elastic relative to supply, suppliers will carry a larger portion of the tax burden, and vice versa.

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