Rare earth metals are used in the production of many of the personal electronic devices you use every day. Suppose there is an unexpected decrease in the price of rare earth metals. a. The decrease in price of rare earth metals will lead to negative cost-push inflation. demand-pull inflation. an increase in expected inflation. negative demand-pull inflation. b. Illustrate the effect of the decrease in the price of rare earth metals by making the appropriate adjustments to the Phillips curve.

Answer:

a. negative cost-push inflation

b. Phillips Curve will shift right

Explanation:

a. Cost push inflation occurs when the costs of inputs such as wages and material costs increases. This leads to an increase in prices because producers will have to increase prices to make a profit.

In this scenario, material prices dropped instead of increasing. A negative cost-push inflation will therefore happen.

b. This will lead to a shift right in the Phillips curve to reflect that inflation has fallen. It will increase the output gap between Potential and Actual GDP because a lower inflation means more unemployment which means the economy is shrinking.

The black dot will shift right to (0, -2)

In the Assembly Department of Concord Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $15,700 $15,100 Indirect labor 21,900 22,500 Utilities 10,100 10,900 Supervision 5,900 5,900 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

difference between transport business and drink business​

Flash ECard Manufacturing manufactures software parts for the computer software systems that produce ecards. The Flash II part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is​ $700. The managerial accountant reported the following manufacturing costs and variable expense​ data: Flash ECard Manufacturing Manufacturing Costs and Variable Expense Report Flash Component Direct materials ​$810 Direct labor ​$160 Variable manufacturing overhead ​$140 Fixed manufacturing overhead​ (current production​ level) ​$185 Variable selling expenses​ (only incurred on sales to outside​ consumers) ​$136 If the highest acceptable transfer price is​ $700 in the​ market, what is the lowest acceptable inhouse price the Data Department should receive to produce the part inhouse at the Computer​ Department? "810"