Being that these types of assets are From significant parts of savings, this is a logical argument. 1982 to 1989, the Dow Jones Average went from 884 to 2,509 which drastically increased capital assets’ values. There was an impressive drop in the unemployment rate during Reagan’s administration as well. 17 million new jobs were created and the unemployment rate fell from 9.7% to 5.5% by the time Reagan’s presidential term ended (Niskanen & Moore 1996). The hours worked by working aged adults grew during
This is important to measure, where sales in stores open at least a year has declined for Target. Target Corporation’s current ratio and quick ratio have both increased in 2008 from 2007. The quick ratio measures the short-term liquidity of the company. The current ratio, which assesses current assets in proportion to current liabilities, has remained fairly consistent from 2006 to 2008. Although the current assets have increased, the currently liabilities have increased as well.
Thatcher’s administration saw and annual percentage growth of 2.7% and a total percentage growth of 69% . Employment plunged from 1.66 million in 1980 to 3.16milllion in 1984 to 2.1million in 1990 and inflation was 6.2% from 1981-1991. Consumer Price Index in the USA went from 47.85% in 1980 to 71.99% in 1989 and in the UK 39.27% in 1980 to 67.67% in 1989. So it can be concluded that both the Reagan and Thatcher governments in terms of economic growth and stability were successful in achieving their objectives. But in terms of public manner the UK experienced much civil unrest under the Thatcher Government and is remembered extensively for this uneasy time.
The final component of trading accounts is gross profit; gross profit is the amount of money that is left after the cost of goods sold has been taken away from the stock turnover. The formula for gross profit is sales turnover – cost of goods sold. According to business alpha the gross profit was 410,000.
Debt to total assets, also known as simply debt ratio, is calculated by taking the total liabilities for the company divided by the total assets for the company; this information is found on the company’s balance sheet. This ratio determines the portion of debts a company has that are paid and financed through its debt. For Huffman Trucking the calculation would look like this for 2011: ($90,283+$71,365)/$267,265 = $161,648/$267,265 = 0.6048 or 60.48% (Huffman Trucking, 2013). Time interest earned, also known as interest coverage ratio, is calculated by taking the earnings before interest and tax and dividing it by interest expense; this information is found on the company’s income statement. This ratio determines the rate and ability in which the company is able to pay its debts off.
The unemployment rate consists of the labour force and number of people actively seeking work whom are unemployed within the labour force. The unemployment rate is calculated by :The number of employed x100 / Labour force. Between 1970 and 1983 there was a rise in this rate that peaked around 10%; this rise could have been attributed due to weak economic conditions that did not produce enough jobs for the supply of labour. From 1992 to 2007, Australia saw a gradual decline in the unemployment rate most likely due to prosperous economic conditions facilitating strong jobs growth. 2) Based on reading the chapter and our lecture discussions, you should be able to identify an “error” in Figure 11.2 (page 247).
i LM IS’ Yn LM’ IS Y 3. In this chapter, we showed that a monetary expansion in an economy operating under flexible exchange rates leads to an increase in output and a depreciation of the domestic currency. a. How does a monetary expansion (in an economy will flexible exchange rates) affect consumption and investment? An increase in output (Y) leads to an increase in consumption (we model this simply as C = c0 + c1Y).
There are several parallels that lead us to believe that history may be repeating itself. Today’s U.S. economy is producing 2.2% more goods output then before the economic recession started in the late 2000’s, but with 3.8% fewer workers. This can be attributed to our modern day recession stimulating huge productivity and efficiency gains as business let mediocre employees go to save on labor costs. They have learned to do more with less. Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs.
Using figure 3 and your own knowledge, explain why the pattern of economic power has changed over time. (10) The pattern of economic power has changed over time for a number of reasons. Firstly in 1913, the British Empire had 37% of global GDP. Britain was one of the very first to be industrialized, which allowed them to trade more globally and therefore increase their GDP through exports. Also the rise of the British Empire meant that they had very much influenced the world through colonization of countries they invaded.
Income inequality Income inequality is the extent to which income is distributed unevenly in a group of people. Income Income is not just the money received through pay, but all the money received from employment (wages, salaries, bonuses etc. ), investments, such as interest on saving s accounts and dividends from shares of stock, savings, state benefits, pensions (state, personal, company) and rent. Measurement of income can be on an individual or household basis – the incomes of all the people sharing a particular household. Household income before tax that includes money received from the social security system is known as gross income.