The factor that determines how long this adjustment process takes is that the long-run aggregate supply curve (ASn), that is vertical at the level of potential GDP, is one that determines the level of real GDP in this economy in the long run.
<h3>What is neoclassical model about?</h3>
When there is increases or decreases in aggregate demand, the neoclassical view holds the notion that how the macroeconomy adjusts is due to the foresight it has that even if wages and prices are termed “sticky”, or slow to change, in the short run, they will be flexible.
In the long-run neoclassical analysis, it is shown that the chain of economic events is ever changing as economic output is said to rise above potential GDP.
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Answer:
B
Explanation:
The cyclically adjusted budget balance is what the budget balance of an economy would be if the GDP was at its potential. It is also known as the known as the full employment budget balance
Answer:
$441,000
Explanation:
The U Co. accrual- basis purchases for the current year can be determined using the following mentioned formula:
Accrual basis purchases=ending accounts payable balance+Cash paid for purchases during the current year-opening accounts payable balance
Accrual basis purchases=$50,000+$455,000-$64,000=$441,000
Answer:
$62
Explanation:
Given that
Units = 1000
Price per unit = 60
Future price drawn/loss = 2000
Thus
1000 (x - 60 ) = 2000
Where x = future price
x - 60 = 2000/1000
x - 60 = 2
x = 60 + 2
x = $62
Thus, future price that will allow the withdrawal of 2000 is $62.
Note, each $1 increase in future prices leads to $1000 gain. When future price therefore increases by $2, gain gotten will be therefore $2000 and this can be withdrawn. Intial price was $60, thus, future for 2000 withdraw = 60 + 2 = $62.