BEC 9

Question 1

What happens when unemployment rates fall very low on inflation and wages

Answer 1

Inflation increases more rapidly

wages tend to rise

Question 2

What is the difference between the definition of inflation/deflation expansion and recession

Answer 2

Deflation - general decline in prices AND level of Interest Rates

Inflation and expansion - both have increased levels of prices

Inflation - interest rates might go up to curb spending and reduce prices

Interest rates might decrease in an expansion to stimulate spending

Recession - decreases in prices, the availability of money, and an increase in interest rates

Question 3

under the revised Model Business Corporation Act - what must you do to have a voluntary dissolution of a corporation

Answer 3

A recommendation from the board of directors and subsequent approval of a majority of voting shareholders