Learn the business cycle definition and understand how it works. Study the parts of the business cycle in economics: expansion, peak, recession,...
Learn the business cycle definition and understand how it works. Study the parts of the business cycle in economics: expansion, peak, recession,...
Suppose the economy is in an expansion. According to automatic fiscal policy, which of the following would most likely occur? A. The existing budget deficit would decrease. B. The existing budget deficit would increase. C. The existing budget surplus woul ...
What is the definition of inflationary gap?An inflationary gap is always related to a business-cycle expansion and arises when theequilibrium levelof an economy’s aggregate output is greater than the output that could be produced at full employment. ...
In the example of Company A above, the decrease in cash earnings it might be because the company is issuing more equity shares to fund its expansion plan. This plan might be earnings accretive in the long run or the number of shares could have increased as more stock options get converted...
ATP knows that it will capture the small percentage of less than 1% of the total market demand. The projection shows that this 1% of the market will enable both growth from profits to fund expansion and a good return in the form of dividends for its investors. RST-PAL pallets are heavier...
and advantageous market circumstances during an economic expansion. As a result, ROCE may increase as businesses enjoy more revenues, enhanced profitability, and effective capital allocation. Enhanced operating leverage and economies of scale may result in an increase in ROCE during rapideconomic growth....
running smoothly and has a limited need for additional funding. Money is coming in and flowing out regularly, giving the business flexibility to spend capital on expansion or inventory. A high ratio may also give the business a competitive edge over similar companies as a measure of profitability...
When two countries are at different points in the business cycle, a currency board can create serious issues. For example, suppose the central bank raises interest rates to restrain inflation during an expansion in the foreign country. The currency board transmits that rate hike to the domestic ...
Industry life cycle analysis is part of thefundamental analysisof a company involving the examination of the stage an industry is in at a given point in time. There are four stages in an industry life cycle: expansion, peak, contraction, trough. An analyst will determine where a company sits...