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goldenfox [79]
2 years ago
15

Suppose the consumer confidence index increases from 103 to 146. How does this change effect the AD/AS model

Business
1 answer:
Darina [25.2K]2 years ago
8 0

The AS curve shifts to the left.

The Consumer Confidence Index is an economic indicator published by various organizations in several countries. Simply put, rising consumer confidence is an indication of the economic growth that consumers are spending and an increase in consumption.

When the latest index exceeds 100, consumers will be more confident than in 1985. Below 100, consumers are less confident than they were then.

Consumer confidence is an economic indicator. It measures how confident consumers are about the general state of the economy. It also measures how confident people are about income stability. Their self-confidence influences not only their financial decisions but their spending activities.

Learn more about the consumer confidence index here:brainly.com/question/25122933

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If the world price for good A is above the domestic price for good A without trade, then producer surplus will ________ and tota
goblinko [34]

Answer:

The correct answer is letter "B": increase; decrease.

Explanation:

Producer surplus is the difference between the price at which the manufacturer actually sells a product and the minimum price the manufacturer would have accepted. The surplus results from the producer being able to sell their goods at a market price higher than their minimum price.  

So, <em>if producer A manufactures a product that is being sold at a higher price level abroad, its producer surplus will </em><u><em>increase</em></u><em>. However, the overall economic surplus with trade will </em><u><em>decrease</em></u><em> since the introduction to producer A to the market will allow consumers to purchase the goods at a lower price</em>.

6 0
3 years ago
A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts
tatiyna

Answer:

Option (A) is correct.

Explanation:

If it contracts with a private firm, for 1st contract,

profit = [(2 × 0.25) + (1 × 0.4) - (1 × 0.35)]

         = 0.55 million dollars

If it contracts with the government, or second contract ,

profit = ($4 × 0.4) - ($2.5 × 0.6)

         = 0.1 million dollars

Therefore, it is clear from the above calculations that the contract with a private will offer more profit as compared to the contract with the government.

3 0
3 years ago
a. As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.
Tanya [424]

As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP : the interest rate effect

What is GDP?

The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

Even while GDP is frequently estimated on a yearly basis, it can also be calculated quarterly. For instance, the government of the United States produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Each piece of data in this report is presented in real terms, which means that it has been adjusted for price changes and is therefore net of inflation.

Learn more about GDP with the help of given link:-

brainly.com/question/1383956

#SPJ4

3 0
2 years ago
Bethany works for an international accounting firm noted for its superior quality of work. Employees check and double-check thei
Masja [62]

The culture of this firm emphasises <u>Attention to Detail</u>

<u>Explanation:</u>

Attention to detail is a significant resume ability to incorporate. The capacity to control little bits of information with precision and centre is a pivotal expertise in a wide scope of employment fields.

You have that aptitude, so you gladly express extraordinary scrupulousness as one of the advantages on your resume.

Achieves careful quality and exactness when achieving an assignment through worry for every one of the territories in question. Conduct Indicators - Provides precise, reliable numbers on all desk work.

8 0
3 years ago
Donna, vice president of finance, and bob, vice president of human resources, are ____ managers.
LuckyWell [14K]

They are considered to be functional managers—a functional manager is those people with authority that are given to them in a way of controlling a certain department, business or organization, in other words, they have to manage an organizational unit.

5 0
3 years ago
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