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Leokris [45]
2 years ago
10

The long-run aggregate supply curve is represented by a vertical line at the solow growth rate because?

Business
1 answer:
anzhelika [568]2 years ago
3 0

The long-run aggregate supply curve is represented by a vertical line at the Solow rate of growth because there is an underlying assumption of long-run money neutrality.

The long-run aggregate supply (LRAS) curve shows the connection between the price level and the real GDP provided all the prices were flexible. Solow growth refers to the economic process of the country in the long-run in which total saving is used for capital growth.

The LRAS curve may be a vertical line at the Solow growth because it is assuming a full-employment outcome. Vertical line on a graph implies that price index and GDP are not related anymore at the Solow growth. That's the real GDP at this potential output refers to the economy's maximum sustainable capacity. within the long-run, the important GDP is not related to the price level. it's only affected by the quantity of country's resources and production.

Learn more about The long-run aggregate supply curve at brainly.com/question/14286645

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A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whil
Aliun [14]

Answer:

No they are not optimally employed

Explanation:

When comparing two employees to see if they are optimally employed we will look at the ratio of their productivity and the ratio of their wages.

Ideally the ratio of their wages should be above the ratio of their productivity for them to be optimally employed.

Productivity ratio of A and B= 15 ÷ 20= 0.75

Wage ratio of A and B= 8 ÷ 12= 0.6666

Wage ratio is less than productivity ratio so the employees are not optimally employed.

6 0
3 years ago
Identify characteristics of a consumer loan in the following list. Check all that apply.
frozen [14]

Answer:

Has a formal, negotiated contract Used for a one-time transaction for a specific purpose

Explanation:

  • A consumer loan is when a person borrows money to form a lender that may be secured or unsecured and they include any types of the mortgages, the refinances, home equity lines of credit, and the credit cards.
  • Along with auto loans and the home loans and personal loans. As they are a type of the installments they can be negotiated and used for a one-time basis and for a specific purpose.
8 0
3 years ago
When a potential customer becomes serious about the purchase and is likely to buy the product, the customer becomes a __________
jenyasd209 [6]

Answer: a. Sales prospect

When a potential customer becomes serious about the purchase and is likely to buy the product, the customer becomes a sales prospect.

Explanation:

A sales prospect is known to be an act of looking out for new customers, persuading them to buy products and in the process, they become potential customers. There are various method in which a salesperson or seller can get a potential prospects, some of which are through referral and direct contact with the prospects. Hence, sales prospects increase and improve the number of customers that a company has.

6 0
3 years ago
Read 2 more answers
2. Pure Water is considering buying new production equipment. The new equipment will increase fixed costs by $200,000 per year a
BARSIC [14]

Answer and Explanation:

The computation is shown below:

But before that we need to do the following calculations which are shown below:

The Contribution per unit of faucet is

= $75 - $15

= $60

And, the Contribution per unit of pitcher filter is

= $100 - $30

= $70

Now Contribution per unit in present sales mix is

= [($60 × 2) + ($70 × 3)] ÷ 5

= ($120 + $210) ÷ 5

= $66 per unit

And

The Fixed cost is

= $1,000,000 + $200,000

= $1,200,000

Now  

Break even units is

= $1,200,000 ÷ $66 per unit

= 18,181.81 units

For faucet, it is

= (18,181.81 × 2) ÷ 5

=  7,272.72 units

For pitcher filter, it is

= (18,181.81 × 3) ÷ 5

= 10,909.086 units

4 0
3 years ago
Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry
Fantom [35]

Answer:

A

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0
4 years ago
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