Linear Regression Model

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Macroeconomics - inflation

- Why do economists refer to the economy as "fully employed" even when there is measured unemployment as high as 4% - 4.5%? ( with a definition of full employment) - What would you expect to happen to the inflation rate if the actual unemployment rate fell below the "full employment" unemployment rate ?

Macroeconomics - CPI and the real rate of return

- Suppose an investor buys $100,000 of shares in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $110,000. If the value of the CPI at the date of purchase was 160, and rose by the sale date to 168, what was the investor's real rate of return on this investment? - Why is it appropriate to use the CPI instead of the Gross Domestic Product Deflator in calculating the real rate of return in this example?

What is the difference between accrual-basis accounting and cash-basis accounting?

E2-1 On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the federal deficit would increase substantially. Instructions (a) What is the difference between accrual-basis accounting and cash-basis accounting? (b) Why would politicians prefer the cash basis over the accrual basis? (c) Write a letter to your senator explaining why the federal government should adopt the accrual basis of accounting. E2-4 Karen Tong, D.D.S., opened a dental practice on January 1, 2002. During the first month of o... click for more

Prepare the adjusting entries at December 31, 2002. (Show all computations.)

Please see the attached file for full problem description. --- P2-4A A review of the ledger of Greenberg Company at December 31, 2002, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Five employees receive a salary of $750 each per week, and three employees earn $500 each per week. December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 2. Unearned Rent $324,000. The company began subleasing office space in its new building on November 1. At December 31, the company had the following... click for more