Answer: a change in the price level.
Explanation:
A shift in the aggregate supply curve is caused by non-price changes such as real wages of the workers, tax, technological innovation, productivity level etc.
The change in price will only result in the movement along the supply curve, which is also referred to as the change in quantity supplied. A change in price will not cause a shift on the aggregate supply curve.
Therefore, option A is the correct answer.
The efficient market theory would be violated if investors earned extraordinary returns months after a company announced unexpected profits. Thus, the correct option is (d.) Investors earn abnormal returns months after a firm announces surprise earnings.
<h3>What exactly is the hypothesis of an efficient market?</h3>
The efficient-market hypothesis is a financial economics concept that asserts asset prices represent all available information. Because market prices should only react to fresh information, it is impossible to continually "beat the market" on a risk-adjusted basis.
Because the EMH is expressed in terms of risk adjustment, it can only offer testable predictions when combined with a specific risk model. As a result, financial economics research has focused on market anomalies, or departures from specified risk models, since at least the 1990s.
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Answer: c. $22,000 increase in operating income
Explanation:
Expected decrease in revenues -$280,000
Expected decrease in total variable costs (-$200,000)
Expected decrease in fixed costs <u> (-$102,000)</u>
Expected increase(decrease) in operating income $22,000
<em>Costs are to be deducted from revenues so if the costs are decreasing, the mathematical treatment would be to add the decrease to the revenues which is how the above was calculated. </em>
Answer:
D) $45,000
Explanation:
The computation of the amount which is included in the current liability section is shown below:
= Account payable balance + bonds payable - discount on bonds payable + dividend payable
= $15,000 + $25,000 - $3,000 + $8,000
= $45,000
The current liability is that liability which is arise for one year. Since, the notes payable is a long term liabilities so we do not consider in the computation part.
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