Question

Does the natural rate of unemployment effect the company revenue at Campbell’s soup company? If so...

Does the natural rate of unemployment effect the company revenue at Campbell’s soup company? If so why?
Does real disposable income effect the company revenue at Campbell’s soup company? If so why?

Homework Answers

Answer #1

No, the natural rate of unemployment will not have much impact on the Company's revenue at Campbell's soup company because this rate does not affect either the total revenue of the firm or total cost of the firm. Thus, it will not impact profit of the firm.

Yes, real disposable income of the company has an effect on the company revenue of the Campbell soup company. Increase in the real disposable income will increase the spending of consumers and thus increase revenue of the firm and decrease in real disposable income will lead to fall in revenue of the firm because of decline in consumption level of the firm.

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