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Mumz [18]
3 years ago
5

Suppose that the price level is fixed in the short run so that the economy​ doesn't reach general equilibrium immediately after

a change in the economy. Determine the​ short-run effects on the real interest rate and output when the expected rate of inflation falls.

Business
1 answer:
Paraphin [41]3 years ago
6 0

Answer:

When the expected rate of inflation falls, the <em>LM</em> curve shifts up to the left because the demand for money decreases which increases the real interest rate. This shift is displayed in the graph in the picture attached.

The graph shows that the real interest rate increases and output decreases.

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The SEC generally oversees financial advisers

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Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started work on 10,000 models. During t
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Answer:

11,125 units

Explanation:

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Beginning WIP (2500*0.75) 25% is completed       1,875

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Equivalent units                                                         <u>11,125</u>

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3 years ago
The person who receives <br> financial protection from a life insurance plan is called a what
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Genetech corp. has invested heavily to develop a patented new product. Genentech wants to achieve a rapid return on its investment. it probably should set a profit maximization.

Profit maximization in economics refers to the short- or long-term process through which a corporation chooses the price, input, and output levels that result in the largest profit. The firm is typically modelled as maximizing profit in neoclassical economics, which is currently the dominant approach to microeconomics.

Economic and social well-being are indirectly influenced by the profit maximization idea. A company uses and allocates resources effectively when it is profitable, and this results in payments for capital, fixed assets, labour, and organization. Economic and social welfare is achieved in this way.

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2 years ago
A government deficit occurs when government expenditures are greater than the revenue collected in a given year. A government de
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Answer:

C

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A deficit occurs when government spending exceeds income either because it spends more than it earns or taxes are too low

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benefits of a budget deficit

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