Consider the economy of freeland, whose overall actual price index and actual output are p and y respectively, and the natural rate of output is yˉ . there are two types of firms in freeland: firms with flexible prices, which set prices according to p = p + 0.5(y − yˉ ); and firms with sticky prices, which set prices base on p = pe (the expected overall price index). also the fraction of firms with sticky prices is s = 0.75.

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

According to herman, one of the differences of managing a nonprofit versus a for-profit corporation is

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer