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jeka57 [31]
3 years ago
13

The __________ is a graphical representation of the term structure of interest rates.

Business
1 answer:
omeli [17]3 years ago
6 0
This is a yield curve
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Suppose the economy is initially at potential output and the quantity of aggregate output supplied increases. What information w
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Answer:

We need to know if the price level is changing or not.

Explanation:

If the economy is at the potential output and the quantity of aggregate output supplied increases, we need to know if this increase is because of an increase in the price level.

If the aggregate price level is increasing then there will be a movement on the SRAS curve. If the increase in quantity supplied is because of a rightward shift in the LRAS curve, the price level will remain the same.  

Also, if the quantity supplied goes back to its original level, in the long run, it implies that the increase in output was because of a short run movement.

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True or False: Stock market crashes have relatively little effect on the overall economy?
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False. The stock market is essential to the economy. The Great Depression is a prime example. 
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2 years ago
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Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the article summary, would be des
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Answer:

Refer to the Article Summary. Implementing a negative interest rate policy, as is discussed in the article summary, would be designed to ___lower_____ the price level and ___improve_____ real GDP.

Explanation:

The Fed will consider negative interest rates when it wants to increase borrowing and lending during economic recessions.  The effects of a negative interest rate are the reduction of the cost of borrowing economy-wide and the increase of economic activity.  The increased economic activity will be achieved through increased investments and increased consumption spending.  Thus, banks and consumers are encouraged to lend and borrow more money so that the economy can spend its way out of recession.

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3 years ago
Profits from a sole proprietorship are reported as taxable income and Question 5 options: can be reported as a deduction. are su
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(B) are subject to a self-employment tax of approximately 15%.

Explanation:

8 0
2 years ago
Consider the market for labor depicted by the demand and supply curves that follow. Use the calculator to help you answer the fo
vekshin1

Answer:

Suppose a senator considers introducing a bill to legislate a minimum hourly wage of $12.50.

Wage           Labor Demanded            Labor Supplied

$12.50               375,000                           625,000

This will result in a surplus of labor (625,000 higher than 375,000)

Which of the following statements are true?

  • Binding minimum wages cause structural unemployment.  As with all price floors, a deadweight loss results, because the quantity supplied is much greater than the quantity demanded. In this case, the price of labor is the wage, and the deadweight loss = structural unemployment
  • In the absence of price controls, a surplus puts downward pressure on wages until they fall to the equilibrium. Since a labor surplus exists, the price of labor should start to decrease in order to match the equilibrium price.
  • If the minimum wage is set at $12.50, the market will not reach equilibrium. The quantity supplied of labor is much greater than the quantity demanded for labor resulting in a surplus.

6 0
3 years ago
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