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Westkost [7]
3 years ago
9

A competitive market is in long-run equilibrium. if demand increases, we can be certain that price will

Business
2 answers:
Aloiza [94]3 years ago
8 0

<em>A competitive market is in long-run equilibrium. if demand increases, we can be certain that the price will </em><em>increase because there is less supply .</em>

<h2>Further Explanation </h2>

In macroeconomics, long-run equilibrium occurs when the aggregate demand curve intersects the short-run aggregate supply curve at the point of the long-run aggregate supply curve. At this point, a country's actual real GDP will be equal to potential GDP. The unemployment rate will be at the natural rate, leaving only frictional unemployment and structural unemployment.

Long-term equilibrium is where the economy settles in a long-term macroeconomic balance. But economic equilibrium often deviates from the long run. This occurs due to fluctuations in short-term aggregate supply and aggregate demand.

Fluctuations in the economy occur when real GDP deviates from potential GDP. These fluctuations occur in the short term and form what we call the business cycle. Deviations from real GDP to potential PBB are called gaps, where when real GDP is higher than potential GDP, there is an inflation gap and when real GDP is lower than potential GDP, there is a recessionary gap.

To moderate the short-term gap, so that it is not too large, the government can use fiscal policy as a tool and the central bank can use monetary policy as a tool to close this gap and return to long-term equilibrium.

Learn More

long-run equilibrium brainly.com/question/6827219

macroeconomics brainly.com/question/6827219

Details

Class: High School

Subject: Business

Keyword: equilibrium, macroeconomics, long-run

bogdanovich [222]3 years ago
6 0
In this situation, we can be certain that price will <span>fall in the short run. All, some, or no firms will shut down, and some of them will exit the industry. Price will then rise to reach the new long-run equilibrium.
When demand increases, more and more companies will try to lower the price of the products so they are favored among their competitors. Because of the harsh competition, some firms will not receive enough sales and will opt out to close down their business but some will survive and thrive.</span>
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Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees
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Answer: (D) Involvement culture

Explanation:

 According to the given question, the involvement culture is one of the type of corporate culture that helps in focusing the various types of internal functions such as the involvement and also the participation of the employees in an organization.

The road-tech tire is one of the company that possess the involvement corporate culture for its family like environment and caring nature for the employees.

The main advantage of the involvement culture is that it helps in reduce the stressful environment of an organization and also providing the various types of economical and social based benefits.

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3 years ago
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Answer:

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6 0
3 years ago
If a price ceiling is set above the equilibrium price in a market rev:a. rationing will be necessary. b. surpluses of the commod
olga_2 [115]

Answer:

b. surpluses of the commodity will develop

Explanation:

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I hope my answer helps you

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e-lub [12.9K]

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