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MakcuM [25]
4 years ago
6

Natural disasters: Suppose a large earthquake destroys many houses and buildings on the West Coast but fortunately results in li

ttle loss of life. Show how to think about this event using the IS curve. Explain how actual output, potential output, and short-run output are affected in the short run, and why.
Business
1 answer:
Troyanec [42]4 years ago
4 0

Answer:

The explanation of this question is given below.

Explanation:

There seems to be no loss of human life such that figures aren't that for customers including employees. Yet homes, schools, as well as other infrastructure are already demolished, so that capital is scarce. This tends to cause demand to decline or the aggregate demand changes left throughout the market especially.

  • Such a lowers real GDP, the level of throughput, as well as increases unemployment. Therefore the IS curve will shift as income decreases.
  • Throughout the shorter term, both real and expected production has declined, as the world economy assets are declining. Mostly in the short term, these have led to lower equilibrium whereby deflation happens.
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Answer:

B. The denial is justifiable given the level of interbrand competition.

Explanation:

Anti trust law only applicable if you can proof that two or more producers in the same industry work together in order to assert their control over the market. They can do this through price fixing, controlling the amount of supply, etc.

This condition<em> can't be found</em> in the scenario above.

The denial that done by PepsiCo is justifiable because in a really competitive market, a company need to impose a strict requirement on which entities they should form a dealership relation with. If PepsiCo choose the wrong dealers, Its competitors could easily taken over the market and resulted in a huge amount of loss for the company.

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Th answer is: C) $13,000

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The following amounts should be allocated to trust principal:

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3 years ago
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It has low liquidity because selling would often require selling at a loss.

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