Answer: The correct answer is "C) LM: shifts to the right".
Explanation: An increase in the money supply shifts the <u>LM</u> curve to the right, and the aggregate demand curve <u>shifts to the right.</u>
As the supply of money increases, the LM curve shifts to the right, establishing a new equilibrium point in which production is going to be higher, thus increasing aggregate demand.
Monopolistically competitive firms are unable to produce enough output to reach the average total cost because of the presence of other monopolistically competitive firms in the industry.
- Monopolistic competition arises when several businesses provide rival goods or services that are comparable but imperfect replacements.
- Entry barriers are low in monopolistic competitive industries, and actions made by one business do not immediately impact those of its rivals. Pricing and marketing choices are how the rival firms set themselves apart.
- Businesses engaged in monopolistic rivalry distinguish their goods through price and marketing tactics.
- The expenses or other impediments that prohibit new rivals from joining a market are minimal in monopolistic competition.
- Between perfect and monopolistic competition, known as monopolistic competition, there is monopolistic competition, which incorporates aspects of both and entails businesses with comparable but distinct product offers.
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Answer:
Identify options.
Explanation:
Added value negotiation is defined as value that is added to a deal between parties to enhance relationship between them. It goes further than normal negotiation by providing something extra.
It focuses on interest, develops options, and creates deals that benefits all parties involved.
Mark did not want to buy cheap bags as a new year gift for his employees, while the employees did not want exorbitant bags.
Mark is focused on adding more value than the employees expect in this scenario.
Answer:
The sacrifice ratio could be as small as 0
Explanation:
The Sacrifice Rate is the loss of output due to the fight against inflation, and can be expressed as how much product is lost to reduce inflation by 1 percentage point. The Sacrifice Rate is a proposition by economist Robert Lucas Jr, who noted that the slowdown in long-term inflation is associated with a reduction in the production of goods and services over a period of time until economic agents adapt to the new reality. pricing and restructuring their expectations of the economy. Therefore, the social cost of fighting inflation is a reduction in GDP and an increase in the unemployment rate.
Because of this, we can conclude that if policymakers are committed to reducing inflation and rational people understand this commitment and quickly reduce their inflation expectations, the sacrifice rate can be as low as 0.
Answer:
confused
Explanation:
The goods whose demand decreases in the market when the consumer income rises are known as inferior goods.
The goods whose demand increases in the market when the consumer income rises are known as normal goods.
Thus, the reasoning of the student is confused as the classification of the goods on the basics of normal or inferior depends on response of the demand when there is a change in consumer's income. Thus, the student's own perception about such classification is confused.