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alexandr402 [8]
2 years ago
6

Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?

Business
1 answer:
Bogdan [553]2 years ago
8 0

Neoclassical economics places a larger focus on providing extra options and <u>improving living standards, </u><u>which are ultimately decided by long-term progress.</u>

As a result, it focuses on long-term growth rather than fighting recessions.

In actuality, neoclassical economics holds that a product's price is mostly influenced by its manufacturing costs. According to neoclassical economics, the primary factor for client decision-making therefore becomes price.

As a result, letting the neoclassical economists concentrate on prices is not the best way to combat the recession. Long-term economic performance is always emphasized by neoclassical economists.

Note that the neoclassical approach to macroeconomics emphasizes the idea that, over time, the economy tends to recover to its potential GDP and natural unemployment rate.

Learn what John Maynard Keynes would recommend to fight the recession: brainly.com/question/25586856


#SPJ4

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Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi
DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

  • accounting profit = $12,000
  • opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0
2 years ago
Waterway Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo
Masja [62]

Answer:

$69,000

Explanation:

The double-declining method uses twice the rate of the straight-line depreciation method.  

In this case, we need to determine the depreciation rate under the straight-line method. The asset has a useful life of 5 years.

the depreciation rate = 1/5 x 100

=0.2 x 100

=20%

The Depreciation rate for the double-declining method is 40%. The straight-line method considers salvage value at the beginning, but double-declining depreciates until the salvage value.

In the first year under the double-declining method, the depreciation amount was $27,600.

It means 40% of the asset cost is $27,600.

The asset cost is 100%

40%=$27,600

100% = 27,600/40 x 100

=$690 x 100

=$69,000

Asset cost = $69,000

8 0
3 years ago
Economists say that making choices involves comparing​
dimulka [17.4K]

Answer:

Marginal benefits and marginal costs.

Explanation:

5 0
3 years ago
Ortions of the financial statements for Myriad Products are provided below.
bonufazy [111]

Answer:

Net cash provided from Operating Activities $301

Explanation:

MYRIAD PRODUCTS COMPANY

Cash flow from Operating Activities:

Net Income $150

Adjustment for non cash effects:

Depreciation $84

Amortization $5

Loss on sale of land $4

Total $243

Changes in operating assets and liabilities :

Decrease in Accounts receivable $17

Decrease in Inventory $18

Increase in Accounts Payable $14

Decrease in Salaries Payable ($14)

Increase in Interest Payable $13

Increase in Income tax Payable $10

Net cash provided from Operating Activities $301

5 0
3 years ago
which component of the marketing mix encompasses all efforts by an international firm to enhance the desirability of its product
spayn [35]

Answer:

Geocentric approach

Explanation:

Geocentric approach marketing is generally used to enhance the desirability of products among potential buyers. geocentric approach marketing is a sort of worldwide advertising wherein organisations attempt to spread out the aspects of their items or administrations among various nations. It happens when a business chooses to widen its activities and spotlight on deals outside of its nation of origin. The whole strategy is implemented to gain more customers.

7 0
3 years ago
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