Calculate the Percentages of Increase and Decrease for the Following

question 92

Essay

Calculate the percentages of increase and decrease for the following items (round to nearest percentage):
$\begin{array}{|l|r|r|}\hline & \mathbf{2 0 2 1} & \mathbf{2 0 2 0} \\\hline \text { Cash } & \$ 80,000 & \$ 90,000 \\\hline \text { Accounts Receivable } & 156,000 & 85,000 \\\hline \text { Merchandise inventory } & 435,000 & 375,000 \\\hline \text { Equipment } & 1,420,500 & 1,450,000 \\\hline \text { Bonds payable } & 410,000 & 520,000 \\\hline \text { Retained earnings } & 295,000 & 285,000\\\hline\end{array}$

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Definitions:

Sacrifice Ratio

A measure of the economic cost of reducing inflation, quantified by the percentage loss in output or production for a one percent decrease in inflation.

Inflation Reduction

Efforts or policies aimed at slowing the rate of inflation in order to stabilize the economy and maintain the purchasing power of currency.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment consistent with a stable inflation rate.

Phillips Curves

The economic theory suggesting an inverse relationship between inflation and unemployment rates over the short-term.