Yes, a $700,000 purchase of inventory on account affects the current ratio.
1. If the softball training company makes a $700,000 cash purchase of inventory, it will increase the current assets by $700,000 and the current ratio will increase to 0.77 to 1 (4.55 + 0.7 = 5.25 million/ 6.5 million).
2. If the softball training company makes a $700,000 purchase of inventory on account, it will increase both the current assets and current liabilities by $700,000 and the current ratio will remain unchanged at 0.70 to 1 (4.55 + 0.7 = 5.25 million/ 6.50 + 0.7 = 7.2 million).
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if total revenue increases when a firm sells more units, then marginal revenue is
If total revenue increases when a firm sells more units, then marginal revenue is positive.
Marginal revenue is the growth in sales that outcomes from the sale of 1 additional unit of output. whilst marginal revenue can continue to be regular over a sure stage of output, it follows from the law of diminishing returns and will finally sluggish down as the output level increases.
Marginal revenue is a significant concept in microeconomics that describes the extra general revenue generated with the aid of growing product income by means of 1 unit.
Marginal revenue is the money a company makes for every extra sale. In other phrases, it determines how a great deal a company might acquire from selling one similarly appropriate.
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one way to recruit companies to a state is to offer tax incentives; another is to assure them that the workforce is prepared. when a state government confirms that an employer will be given the authority to terminate employment of an employee at any time without cause and gives the same assurance to the employees, those statutes are referred to as affirmative action policies. due process policies. employee liability policies. employment-at-will policies. countercyclical hiring policies.
A tax credit is a government policy designed to motivate people and companies to spend a lot of money or to make savings by lowering the amount of taxes they must pay.
An affirmative plan is what, exactly?Affirmative action is defined as "actions made to improve the participation of women or minorities within occupations, fields of higher learning, and businesses from that they have historically been excluded."
What are the labor at will doctrine's four restrictions?However, there are still restrictions associated with employment at will because civil rights laws still exist. A person's termination is prohibited by federal law if it is due to that specific personality, race, gender, color, national origin, preference for equal pay, maternity, genetic information, religion, or handicap.
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To decrease the money supply using the reserve requirements, what would the fed typically do?
The Federal Reserve can increase the money supply by lowering the reserve requirements for banks, which allows them to lend more money. Conversely, by raising the banks' reserve requirements, the Fed can decrease the size of the money supply.
when the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to keep in reserves, permitting them to make extra loans to consumers and businesses. This will increase the kingdom's money supply and expands the financial system. To lower the money deliver, the Fed increases rates to borrow and discourages it. explain reserve requirements. To boom cash supply, the Fed lowers reserve requirements so banks will loan extra.
To decrease cash supply, the Fed raises reserve necessities so the banks can loan much less. by using increasing the reserve requirement, the Federal Reserve is largely taking money out of the money delivery and increasing the fee of credit score. lowering the reserve requirement pumps cash into the financial system by giving banks extra reserves, which promotes the expansion of financial institution credit and lowers charges.
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3a. what are economic indicators (definition)? 3b. list two each examples of (a) leading economic indicators, (b) coincident economic indicators and (c) lagging economic indicators.
lagging economic indicators are economic indicators.
What economic indicators are there?Economic indicators include measurements of macroeconomic stability and performance, such as gross domestic product (GDP), consumption, investment, and international trade (central government budgets, prices, the money supply, and the balance of payments).Economic metrics including the balance of trade, the consumer price index, and the gross domestic product (GDP) are examples of lagging indicators (BOT). These indicators are different from leading indicators, which are used to forecast and predict, such retail sales and the stock market.Numerous indices, earnings reports, and economic summaries are used to measure the state of the economy. These include the unemployment rate, quits rate (quit rate in American English), housing starts, consumer price index (CPI), inverted yield curve, consumer leverage ratio, industrial production, bankruptcies, and many more.To learn more aboute economic indicators refer to:
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if the only two firms in an industry agree to fix the price at a given level, this is an example of: a price extortion. b collusion. c satisfying demand. d price discrimination. e price leadership.
If only two firms in an industry agree to fix the price at a given level, this is an example of b. collusion.
In order to raise or fix prices and decrease output in order to increase profits, sellers may combine, conspire, or come to agreements known as collusion. Context: Unlike the term "cartel," "collusion" does not always call for a formal, either public or private, an agreement between members.
Along with other things, political influence was noted as one of the main causes of collaboration. The most crucial measures to prevent collusion are empowering new contractors, a well-regulated environment, fair competition, and better procurement management.
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which technique is used to create billions of copies of dna in a short amount of time?
The technique is used to create billions of copies of DNA in a short amount of time Polymerase Chain Reaction
Now, According to the question:
What is PCR (Polymerase Chain Reaction)?
is a revolutionary method developed by Kary Mullis in the 1980s. PCR is based on using the ability of DNA polymerase to synthesize new strand of DNA complementary to the offered template strand. Because DNA polymerase can add a nucleotide only onto a preexisting 3'-OH group, it needs a primer to which it can add the first nucleotide. This requirement makes it possible to delineate a specific region of template sequence that the researcher wants to amplify. At the end of the PCR reaction, the specific sequence will be accumulated in billions of copies.
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the discount rate refers to the: multiple choice lower price large institutions pay for government bonds. rate of interest the fed charges for loans to banks. rate of interest the fed charges for loans to individuals. rate of interest the fed charges for loans to government.
The discount rate refers to the rate of interest the fed charges for loans to banks. So option b. is correct.
The term discount rate can refer to either the interest rate that the Federal Reserve charges banks for short-term loans or the rate used to discount future cash flows in discounted cash flow (DCF) analysis. In a banking context, discount lending is a key tool of monetary policy and part of the Fed's function as the lender of last resort.
Commercial banks in the US have two primary ways to borrow money for their short-term operating needs.
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what is the benefit of claiming 0 or 1 withholding allowances on the w-4 form you receive when you start your job?
The advantage of claiming 0 or 1 withholding allowances on the W-4 form you get when you start work If you choose option 0 or 1, more money will be withheld from your paycheck. If you file taxes, you'll probably get a tax refund.
What is a withholding allowance?An exemption that reduces the amount of income tax you need to withhold from an employee's paycheck is known as a withholding allowance. Fewer withholding allowances result in bigger income tax deductions, whereas larger allowances result in smaller income tax deductions. You can choose how much tax you want deducted from your pay each pay month by entering a "0" on line 5. Less tax will be deducted from your paycheck each pay period if you choose to claim 1 for yourself instead. If you claim 0 or 1 allowances, you'll probably obtain a tax refund. Claim two personal allowances for you and one for each dependent you have if you wish to get close towards withholding full exact tax liability.
How many withholding allowances should I claim?If you are single and only have one job, it is normally a good idea to claim one allowance. If you are married and filing jointly, you should only claim one allowance. You would additionally claim one allowance if you filed as the household's head. Come tax season, you'll probably receive a refund. An allowance is a sum of money determined by the contract documents to be added to the agreed-upon payment to cover the expense of specific but unspecified prescribed items.
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amanda wants to be part of the most basic form of ownership for a corporation. she should invest in:
Amanda wants to be part of the most basic form of ownership for a corporation. She should invest in common stock.
What do you mean by the common stock?A security that symbolizes ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.
On average and over time, common stock has shown to be a fantastic source of returns for investors through capital gains and regular dividends.
Additionally, companies gain from issuing shares since they avoid debt commitments, but some ownership interest is forfeited.
Common Stock = Total Equity – Preferred Stock – Additional Paid-in Capital – Retained Earnings + Treasury Stock.
Therefore, Amanda wants to be part of the most basic form of ownership for a corporation. She should invest in common stock.
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a retailer needs to purchase 10 printers. the first printer costs $57, and each additional printer costs 3% less than the price of the previous printer, up to 15 printers. what is the total cost of 10 printers?
The total cost to purchase 10 printers was $498.89. C is the right option. this is a question of geometric sequence.
A unique kind of sequence in the number series is a geometric sequence. It is a set of integers where each term is created by dividing or multiplying the one before it by a predetermined quantity called the common ratio.
From the question we have, each additional printer costs 3% less than the price of the previous printer
The first printer costs $57.
[tex]57 ( 1 - \frac{3}{100} )^{n-1}[/tex]
[tex]57 ( 1 - 0.03 )^{n-1}[/tex]
[tex]57 ( 0.97 )^{n-1}[/tex]
The formula for the sum of a geometric sequence is
[tex]\frac{a_{1}(1 - q^{n})}{1 - q}[/tex]
a1 = 57 , q = 0.97 , n = 10
[tex]\frac{57_{}(1 - 0.97^{10})}{1 - 0.97}[/tex] = $498.89
Hence, The correct option is C. $498.89
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The given question is incomplete here is the full question.
A retailer needs to purchase 10 printers. The first printer costs $57, and each additional printer costs 39% less than the price of the previous printer, up to 15 printers. What is the total cost of 10 printers?
A $552.90
B $589.00
C $498.89
D $433.33
in exchange for an ownership share, small businesses receive financing from a group of investors known as
In exchange for an ownership share, small businesses receive financing from a group of investors known as venture capitalists.
A venture capitalist, also referred to as a private equity investor, loans money to companies with significant growth potential in lieu for an equity ownership.
This can entail offering seed money or helping start-ups gain access to equity markets so they can expand.
Investments are often made in the venture capital fund by the limited partners of the venture capital businesses that are formed.
Typically, a committee chosen by the fund makes investment decisions. The pooled investor capital is utilized to finance these enterprises in exchange for a large stock participation after potential emerging growth companies have been identified.
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the primary risk from incineration is the risk of contaminants leaching from the ash. group of answer choices true false
the primary risk from incineration is the risk of contaminants leaching from the ash is true
What four issues are related to incineration?The practise of incinerating waste, or burning waste, is a popular way to get rid of waste. The amount of trash can be reduced using this technique, but there are some possible dangers. For instance, improper combustion management can result in the production of dangerous byproducts like dioxins, furans, and heavy metals.In addition, some of these dangerous byproducts may be present in the ash produced by the incineration process, and if handled improperly, these toxins may leak into the environment. Therefore, improper management of incineration could result in air and water contamination.Incineration facilities must follow stringent environmental standards and utilise appropriate containment and treatment systems to make sure that dangerous chemicals are not released into the environment in order to limit these hazards.To learn more about incineration refer to:
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a measure of the economic impact of the young and old on the more economically active and productive members of a population is known as the
A measure of the economic impact of the young and old on the more economically active and productive members of a population is known as the dependency ratio.
What is dependency ratio?The age dependency ratio measures the proportion of dependents—those aged 15 to 64—to the working-age population. Data are presented as the number of dependents per 100 people who are working age.
The population ages 0 to 15 is divided by the population ages 16 to 64 to calculate the youth dependency ratio. The population aged 65 and above divided by the population aged 16 to 64 is known as the old-age dependency ratio. The ratios for youth and old age together make up the total age dependency ratio.
Thus a measure in economic study of working age group is known as dependency ratio.
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on september 6, irene westing purchased one bond of mick corporation at 94.75%. the bond pays 8.25% interest on june 1 and december 1. the stockbroker told irene that she would have to pay the accrued interest and the market price of the bond and a $4 brokerage fee.what was the total purchase price for irene? assume a 360-day year (each month is 30 days) in calculating the accrued interest. (hint: final cost
The total purchase price that Irene paid for one bond of Mick Corporation at 95.25% is $9,554.
What is a bond?A bond is a fixed-income bearing instrument that represents a loan made by an investor to a borrower.
Bonds are usually priced at $1,000. With a discount of 5.25% (100-94.75), the cost of the bond is $9,475 ($1,000 x 94.75%).
The interest accrued on the bond from June 1 to September 6, when Irene bought the bond, is calculated as:-
Face value of the bond = $1,000
Discounted value = $9,475
Interest rate = 8.25%
Interest for six months = $41.25 ($1,000 x 4.125%)
The number of days from June 1 to September 6 is 96 days
∴ Accrued interest = $22 ($41.25 x 96/180)
Brokerage fee = $5
Final cost of purchase = Cost of bond + Accrued interest + Brokerage fee
= $9475+$22+$5
= $9,502
Therefore, $9,502 is the total purchase price of the bond for Irene.
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g the coupon rate is a. the annual coupon divided by the face value of the bond. b. the annual coupon divided by the price of the bond. c. the annual coupon divided by the issue price of the bond. d. equal to the yield to maturity.
The coupon rate is the annual coupon divided by the face value of the bond.
What is the rate?A quantity, sum, or degree is determined in relation to another thing. A price or payment based on another quantity, she typed at a rate of 80 words per minute. in further detail: the cost per insurance unit. In mathematics, comparing two related quantities stated in different units is known as a rate. The ratio's numerator expresses the rate of change for the other (dependent) variable.
The annual income an investor might anticipate while owning a specific bond is known as the coupon rate. The calculation is done by dividing the total of the annual coupon payments by the par value, and it is established at the time the bond is issued. A bond's yield to maturity and coupon rate are equal at the time of purchase.
Therefore, Thus option (A) is correct
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What type of account at a bank would your parents open up to keep money to save for your college educations?
Your parents would open a graduation account at a bank to keep funds to use toward your college costs.
You will be granted permission to open a student bank account. After you complete your study, this account can be converted into a graduate account, which offers additional incentives and perks. Discover how to use this budgeting tool effectively both while you're a student and after you graduate, as well as the fundamental differences between accounts and which one is best for your banking needs. Your graduation account is your last chance to settle outstanding debt without incurring interest. You can set up your graduate account one year after graduating. The second year overdraft limit, which is typically smaller than the first year, will, apply to you if you wait.
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which project transformed the site of a neglected waterfront warehouse and harbor district in dubuque, iowa?
The law of supply and demand is a theory that aims to explain the connection between a product's price and its availability and demand, such as in the case of a security. In general, low supply and high demand increase an item's price whereas high availability and low demand lower it.
What is a security in finance?A financial instrument that is fungible and negotiable and has some kind of monetary worth is referred to as a "security."
A security can reflect rights to ownership through the ownership of an option, a creditor relationship with a governmental organization or company through the ownership of that entity's bond, or ownership of stock in a firm.
The U.S. stock market was previously governed at the state level until the Securities Act of 1933, which is the first federal law to do so.
According to the law, anyone who wants to offer investment contracts for sale to the general public must publish specific details about the intended offering, the firm doing so, and the key personnel of that company.
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two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
The two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is more than the allocatively efficient amount.
What is meant by oligopolistic firms?
In economics, oligopolistic firms means a small number of firms who realize they are interdependent in their pricing and output policies.
Given,
Here we need to find the missing term in the statement two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.
As per the definition of oligopolistic firms, if you want to set a price to cartel then the quantity must be higher that means it will be allocatively efficient amount.
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the portfolio weight is . multiple choice question. the percentage of the total value that is invested in an asset the amount of return versus the overall market the square root of the standard deviation always equal to 10
The portfolio weight is the percentage of an investment portfolio that a particular holding or type of holding comprises.
A portfolio is a collection of financial investments like stocks, bonds, commodities, coins, and cash equivalents, inclusive of closed-end finances and alternate traded finances (ETFs). people usually agree with that stocks, bonds, and coins incorporate the core of a portfolio.
A portfolio is a collection of various forms of assets owned by a person to fulfill their financial objectives. nowadays, there are various kinds of economic assets that you can encompass in your portfolio from fairness stocks, mutual budget, debt finances, gold, belongings, derivatives, and more.
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martinez co. borrowed $61,500 on march 1 of the current year by signing a 60-day, 9%, interest-bearing note. assuming a 360-day year, when the note is paid on april 30, the entry to journalize the payment should include a
when the note is paid on april 30, the entry to journalize the payment should include a debit to Interest Expense for $750
A loan made by a lender to a borrower with funds that are subject to interest accrual in accordance with the terms of the agreement is referred to as an interest bearing note. There are numerous uses for these notes. An account receivable, for instance, can be converted into a note in which the customer becomes a borrower and pays interest on what was previously an account receivable. A mortgage is another option, which requires a homeowner to agree to a lengthy series of payments that may include both principal and interest repayment, depending on the terms. A long-term loan to a company that is used to support its funding requirements over a number of years is the third type of interest-bearing note. An interest-bearing note may stipulate that the borrower repay the entire principal at the end of the term loan or in instalments over the note's duration.
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if a firm employs resources in imperfectly competitive markets, to maximize its profits the marginal revenue product of each resource must equal:
The correct response is b) its marginal resource cost. The increased expense incurred by using one more unit of the input is known as the marginal resource cost.
It is calculated by dividing the variation in the total cost by the variation in the number of inputs. The increased expense incurred by using one more unit of the input is known as the marginal resource cost. It is calculated by dividing the variation in the total cost by the variation in the number of inputs. Resources also have a marginal revenue cost (MRC), which is determined by dividing the change in total resource cost by the change in unit resource amount. Press the M+ button to add a number to the calculator's memory in order to use the memory feature of the UCAT calculator. To recall this number, press the MRC button. This is especially helpful for calculating out complex powers. To calculate 17.85, for instance, type 17.8 and press the M+ button.
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if a firm employs resources in imperfectly competitive markets, to maximize its profits the marginal revenue product of each resource must equal:
a) its marginal product
b) its marginal resource cost
c) its price
d) 1
A household that cuts back on supermarket spending after going over budget on its food expenses is using the budget as a(n)
A household that cuts back on supermarket spending after going over budget on its food expenses is using the budget as a controlling tool.
The management can use the budget as a tool to aid in planning and controlling activities. The quantitative statement that is created and approved before a specific time period is referred to as a budget. It denotes the course of action to be taken while the goal is being achieved. There are numerous functional budgets created for diverse objectives, including:
Sales budget - Estimated sales for the budgetary period.Production budget - Annual production funds required.Material budget - Estimated raw material costs for product-wise production are included in the material budget.Labor budget - Estimate of the number of workers needed to manufacture a product.Distribution overheads - This section specifies the selling and distribution costs that will be incurred throughout the budgetary period.Cash budget - Estimate of cash payments and receipts for the foreseeable future.
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how would the federal reserve stimulate the united states economy and reduce unemployment?
The federal reserve can stimulate the United States economy and reduce unemployment by coming up with various monetary policies.
Unemployment is a major issue for not only the United States but many other countries of the world.
In order to enhance or stimulate the economy, various monetary policies can be launched by using the federal reserve in the United States such as purchasing of market assets, lending discounts, etc in order to stable the economy.
The economy can also be improved by introducing various skill courses from which people can learn new skills and get jobs. By doing so, the unemployment rate can be decreased in the United States.
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what audit evidence will the auditor need to obtain during the audit to become comfortable with revenue during q4?
The PCAOB's auditing requirements should be followed by auditors of American public firms.
An audits goal is to increase the level of trust that users may place in the financial statements.
The client's obligations for internal control over financial reporting and the financial statements are a crucial part of the process of developing the audit opinion.
There are five steps in the process of developing an audit opinion.
The auditing cycle technique offers a means of segmenting the audit into manageable parts.
The auditor concentrates on a certain cycle's transaction flow, including how transactions are started, approved, documented, and reported.
The audit is made to test management claims during each cycle.
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question content area which of the following will be reported as a long-term liability on the balance sheet? a.accounts payable b.notes payable (due in 11 months) c.accrued liabilities d.none of these choices
notes payable (due in 11 months) will be reported as a long-term liability on the balance sheet.
Notes payable are long-term liabilities that show the cash an organization owes its lenders — banks and other monetary establishments as well as different wellsprings of assets like loved ones. They are long-term since they are payable past a year, however typically in five years or less.
Organizations might acquire these assets to purchase resources, for example, vehicles, hardware and devices that are probably going to be utilized, amortized and supplanted in five years or less.
A few notes payable are gotten, and that implies the leaser has a case on the borrower's resources on the off chance that installment terms are not met. Whenever got, the course of events for reimbursement could be longer.
Notes payable show up under liabilities on the asset report, isolated into "bank debt" and "other long-term notes payable". Installment subtleties can be tracked down in the notes to the fiscal reports.
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If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take? (monetary / fiscal)answer choices- increase the Required reserve / increase government spending- sell government securities / decrease taxes- decrease the interest rate / increase government spending- buy government securities / decrease government spending
Increase the Required reserve / increase government spending.
What is growth and example?Growth is the physical process of development, particularly the process of becoming physically larger. It is quantifiable, meaning that it can be measured, and it is mostly influenced by genetics. For example, the year that she was 11, Keisha got taller by two inches.
Why is growth important?Successful personal growth is not only about the value to your own life, but value to those around you and the society. Personal growth can help you in all areas of your life. It will help you grow emotionally and psychologically to become a more loving, compassionate, and positive person.
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what groups in the economy are likely to oppose foreign trade? explain why these groups oppose trade.
Economic winners and losers are prone to reject foreign trade since some work hard while others do not.
International trade benefits economies overall, as economists have long contended, and with good reason. However, more commerce is likely to produce both losers and winners. In fact, recent years have seen an increase in public concern over the negative effects of trade and globalisation for certain parts of society, particularly in the setting of a larger context of rising inequality in many countries. In turn, those worries are considered as contributing to the growth of populism in certain affluent nations. Given these developments and the UK's preparations to leave the EU and establish an independent trade policy, it is crucial to comprehend how potential trade agreements or changes to existing trade policy may affect economic outcomes like prices, productivity, and output, which in turn may affect people and places.
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why might an individual's labor supply curve bend backward? why might an individual's labor supply curve bend backward? as wages rise above a threshold level, firms limit the number of hours that a worker can work. when wages rise, firms hire fewer workers. as wages rise above a threshold level, the individual will decide to work harder. as wages rise above a threshold level, the individual may opt for more leisure time.
The individual's labour supply curve is backwards-sloping because when the salary increases over the threshold level, the individual can choose to spend more time in leisure activities. The right response in this case is option D.
The backwards-bending labour supply curve, on the other hand, happens when an even higher income incentivizes individuals to work less and spend more time in their free time.
We frequently see a supply curve that bends backwards in labour markets. As a result, increased salaries may eventually cause a decrease in the workforce. This happens when workers are enticed by increased compensation to work fewer hours and spend more time relaxing.
Pigeons that peck for grains have labour supply curves that slope upward at low wage rates but bend backwards at higher wage rates as the pigeons become less likely to forgo pecking in favour of other pigeon activities. Rats' and mice's labour supply curves likewise bend backwards.
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in 2022 medrano manufacturing reported 3.9 billion in cash flows from operating actiivites but on ly 2.7 billion in net income what is one possible reason that medrano coudl reporet this difference
They recorded $1.2 billion in noncash expenses on their income statement.
One possible reason that Medrano could report this difference is (3.9 billion - 2.7 billion) =$1.2 billion
In accounting terms, price is the operational fee that is paid to earn business sales. It manner the outflow of cash in going back to goods or offerings. prices also can be written as the sum of all the operations that normally convey income.
Price is any specific outflow of coins or different precious belongings from a person or organization to another man or woman or enterprise. This outflow is normally one facet of exchange for services or products which have identical or higher contemporary or destiny fees to the customer than to the vendor. Technically, a fee is an event in which a proprietary stake is dwindled or exhausted, or a liability is incurred. In terms of the accounting equation, costs reduce owners' fairness.
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Complete Question:
In 2017, Medrano Manufacturing reported $3.9 billion in cash flows from operating activities but only $2.7 billion in net income. What is one reason that Medrano would report this difference?
an economist working for the central bank of fredonia estimates a phillips curve for fredonia and reports the following points on the estimated curve. actual inflation rate (percent) unemployment rate (percent) 5 4.0 4 4.5 3 5.0 2 5.5 refer to table 35-1. which of the following statements is correct? a. these points are consistent with both the theoretical short-run and long-run phillips curves. b. these points are consistent with the theoretical long-run phillips curve, but not with the short-run phillips curve. c. these points are not consistent with either the theoretical short-run or long-run phillips curves. d. these points are consistent with the theoretical short-run phillips curve, but not with the long-run phillips curve.
The theoretical short-run Philips curve fits these points, but not the long-run Philips curve.
The Phillips curve says that unemployment and inflation go in the opposite direction. When unemployment goes down, inflation goes up, and vice versa.
In the 20th century, the Phillips curve was used to guide macroeconomic policy, but the stagflation of the 1970s made people question it.
In the 1960s, people thought that any kind of fiscal stimulus would increase aggregate demand and set off the next steps. As labor demand rises, companies raise pay to compete and attract a smaller pool of talent. As a result, the number of people without jobs goes down, and the labor market becomes more competitive.
Because of this belief, many governments used a "stop-go" strategy in which they set a goal rate of inflation and then used monetary and fiscal measures to grow or shrink the economy to reach the goal rate.
But as stagflation got worse in the 1970s, the consistent trade-off between inflation and unemployment broke down, making it hard to believe that the Phillips curve was right.
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