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Wewaii [24]
3 years ago
8

g The long-run effect of an increase in household consumption is to raise a. both real output and the price level. b. real outpu

t and lower the price level. c. real output and leave the price level unchanged. d. the price level and leave real output unchanged.
Business
1 answer:
satela [25.4K]3 years ago
6 0

Answer:

D). The price level and leave real output unchanged.

Explanation:

The long-run impact of an increase in household consumption is to elevate 'the price-level and leave real output unchanged.' The increased consumption would lead to a rise in demand which will correspond to an increase in out and decrease in unemployment.

As per the long-run self-adjustment mechanism, this shock in the economy will lead to inflation while the increase in Aggregate demand would correspond to an increase in prices and GDP. The inflation would increase the labor charges and therefore, the firms would produce less and it keeps falling until the full employment output is achieved. Thus, the long-run effect would be that GDP returns to its previous state(unchanged) while the prices are still higher. Hence, <u>option D</u> is the correct answer.

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<h3>What is the Atlanta Journal-Constitution?</h3>

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5 0
1 year ago
If a stricter quota, such as 30,000 tons of apricots, was imposed on this market, we would expect:
gizmo_the_mogwai [7]

Base on the given situation above, if there is a presence of stricter quota such as with the 30,000 tons of apricots to be provided and was imposed on a market, it is expected that quantity demand and the imports in the market to decrease even if the domestic quantity and price that has been provided will increase.

8 0
3 years ago
Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cas
lubasha [3.4K]
<span>Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cash value. His plan is a whole life policy.</span>
5 0
2 years ago
A survey by the World Bank indicates that of the companies surveyed; unfortunately, only 30 percent have board-approved policies
creativ13 [48]

Answer:

False

Explanation:

It is not necessary to have board-approved policies on environmental management as the only way to indicate that corporate social responsibility practices have become an insignificant factor in determining where multinational corporations conduct business.

7 0
3 years ago
The expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is 0.8 and the beta of B is 1.5.
Zigmanuir [339]

Answer:

Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

Explanation:

Expected return= free return + Beta (Expected rate of return – risk free rate)

Portfolio A

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Portfolio B

6%+1.5(6%)

6%+9%= 15%

It depends on different factors. Portfolio B has a higher return but more volatile stocks. However it depends on how the individual can tolerate risks.

4 0
3 years ago
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