Question: Consider the table in the next column, which shows the change in inventories for each quarter from the first quarter of 2007 (2007:I) through the

Consider the table in the next column, which shows the change in inventories for each quarter from the first quarter of 2007 (2007:I) through the fourth quarter of 2010 (2010:IV) measured in billions of 2009 dollars. Provide a macroeconomic explanation for this pattern

Accompanies problem 3.10. Change in Inventorles Year Quarter 2007 $19.6 49.4 II 50.2 IV 23.0 2008 -20.2 -26.4 II -20.7 IV -67.4 2009 -144.5 II -190.1 II -206.1 IV -49.6 2010 9.8 II 48.8 116.2 IV 58.1

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Inventories climbed during 2007 as the economy slowed ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1347-B-A-A-M-E(1082).docx

120 KBs Word File

Students Have Also Explored These Related Micro Economics Questions!

Consider the diagram in the next column, in which the current short-run equilibrium is at point A, and answer the questions that follow. a. What type of gap exists at point A? b. If the marginal...

Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces...

Optima Company is a high-technology organization that produces a mass-storage system. The design of Optimas system is unique and represents a breakthrough in the industry. The units Optima produces...

Consider the following table, which shows the change in inventories for each quarter from the first quarter of 2007 (2007:I) through the fourth quarter of 2010 (2010:IV) measured in billions of 2012...

Consider the following table, which shows the change in inventories for each quarter from 2007:I to 2011:II measured in billions of 2005 dollars. Provide a macroeconomic explanation for this pattern....

Please provide the following ratios Earnings per Share of Common Stock Current Ratio Gross Profit Rate Profit Margin Inventory Turnover Days in Inventory Accounts Receivable Turnover Average...

Business memorelating to Audit. All questions and materials needed are attached. Please, ensure you are familiar with auditing before accepting this project. Thank you. THE ACCOUNTING REVIEW Vol. 90,...

Please answer all questions thoroughly. Thank you. Macy's & JC Penney - Questions 1. Using the guidelines provided below, compute financial ratios for fiscal years 2009, 2010, and 2011 (ending on...

Resources:Appendix A, The Home Depot, Inc. Annual Report inFundamentals of Financial Accounting Writea 1,050- to 1,750-word paper in which you address the following:...

Details of two f sterling bonds with par value of 100 issued by the same company and paying annual interest are provided below. Maturity Coupon 5 years 4% 4 years 4% Bond A Bond B YTM (1) What is the...

Once the conceptual links between tables have been determined, how are the physical links incorporated?

The following financial information is available for these two companies for 2 0 2 4 . In addition, the subsidiary s income was earned uniformly throughout the year. The subsidiary declared dividends...

If the public expects a corporation to lose $5 per share this quarter and it actually loses $4, which is still the largest loss in the history of the company, what does the efficient market...

Stamp collecting has become an increasingly popular-and expensive-hobby. One favorite method is to save plate blocks (usually four stamps with the printing plate numbering the margin) of each new...

Sally deposited $100 a month in her savings account for 24 months. For the next 5 years she made no deposits. What is the future worth in Sally's savings account at the end of the 7 years, if the...

In the early 1980s, planners were examining alternate sites for a new airport to serve London. In their economic analysis, they computed the value of the structures that would need to be removed from...

Your employer has asked you to examine the interest-rate risk of your bank relative to your direct competition. Management is concerned that interest rates will fall by the end of the year and wants...

8. If I find a correlation of .25 between hours of sleep and exam scores a.this means r squared is .0625 b.this means it is a significant relationship c.this means r squared is .05 d.this means it is...

Question 2 a. Calculate the net present value of the following project for discount rates of 0, 50, and 100%: Cash Flows () C1 C2 -6750 4500 18000 b. What is the IRR of the project