The medium-run equilibrium is characterized by four conditions:
1. Output is equal to potential output Upper Y equals Upper Y Subscript n.
2. The unemployment rate is equal to the natural rate u equals u Subscript n.
3. The real policy interest rate is equal to the natural rate of interest r Subscript n where aggregate demand equals Upper Y Subscript n.
4. The expected rate of inflation pi Superscript e is equal to the actual rate of inflation pi.
Which of the following best characterizes the behavior of inflation in a medium-run equilibrium if the level of expected inflation is formed so pi Superscript e equals pi (negative 1)?
a. If expectations of inflation are formed so that πt = πt-1, characterize the behavior of inflation in a medium-run equilibrium.
b. If the level of expected inflation is πbar, what is the level of inflation in the medium-run equilibrium?
c. Write the IS relation as Y = C(Y-T) + I(Y, r+x) + G. Suppose rn is 2%. If x increases from 3 to 5%, how must th/e central bank change rn to maintain the existing medium-run equilibrium?
d. Suppose G increases. How must the CB change rn to maintain the existing medium-run equilibrium?
e. Suppose T decreases. How must the CB change rn to maintain the existing medium-run equilibrium?

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?

Which are the best examples of costs that should be considered when creating a project budget?

Over the past decade, brands that were once available only to the wealthy have created more affordable product extensions, giving a far broader range of consumers a taste of the good life. jaguar, for instance, launched its x-type sedan, which starts at $30,000 and is meant for the "almost rich" consumer who aspires to live in luxury. by marketing to people who desire a luxurious lifestyle, jaguar is using: