Answer:
The answer would be PRICE SIGNALING
Explanation:
Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.
According to the aggregate production function, GDP increases when a nation,
- improves its technology, A
- increases its stock of physical capital, K
- increases the human capital of its workers, H
<h3>What is aggregate production function?</h3>
An aggregate production function holds constant all other production factors, like as capital, natural resources, and technology, and connects the entire output of an economy to the total amount of labour engaged in that economy. Land, labour, capital, and entrepreneurial activity are the elements that make up aggregate production function.
A method for determining productivity and economic growth is the aggregate production function. Therefore, economists use it to gauge the efficacy of the final product and the quality of the inputs. The maximum output that can be produced given the quantity of the production elements is represented by the aggregate production function. Keep in mind that the following uses lower case letters for plant level variables and capital letters for aggregate variables.
Hence, According to the aggregate production function, GDP increases when a nation,
- improves its technology, A
- increases its stock of physical capital, K
- increases the human capital of its workers, H
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Answer:
It shifts to the left by $200 million at each price level
Explanation:
Given that,
Multiplier = 2
Net exports decrease by $100 million
Change in aggregate demand is calculated as follows:
Multiplier = Change in Aggregate Income (ΔY) ÷ Change in Exports (ΔX)
2 = ΔY ÷ (-$100)
ΔY = -$200
Therefore, the national income will fall by -$200 and hence the aggregate demand will fall by -$200 . Hence, the aggregate demand curve will shift to the left.
The question wants us to group the types of shopping in to different categories
- Appliances are: shopping goods
- Automobile battery jumpstart services are specialty
- Cemetery plot are unsought goods
What are shopping goods?
They are goods that are more expensive than the convenience goods. They need one to shop for them. Examples are appliances.
<h3>What are specialty goods?</h3>
They are the types of goods that people would refuse to take substitutes for. They search extensively for them.
<h3>What are unsought goods?</h3>
This refers to goods to there are rarely need for people to request for them An example would be funeral services.
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