1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Shalnov [3]
3 years ago
11

In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and manage

ment agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of the aggregate supply curve?
Business
1 answer:
Ainat [17]3 years ago
5 0

Answer:

Slope of short-run aggregate supply curve: wage-price flexibility

In the short run, some factors are fixed and some factors can vary and the costs incurred on fixed factors are constant. Thus, the price level does not change as fast as it could have been if all are variable resources.

However, if prices are subjected to the variation in the wages, then the price level will increase faster than the costs. If actual price level is below the expected level, then the nominal wage rate is more than the expected and vice-versa. This would result in a greater slope of the short-run aggregate supply curve, which means short-run aggregate supply curve will be relatively steeper.

In the short run, the wage rate and price level are sticky downward because fall in nominal wage of workers will reduce the incentive to work.

Hence, if the wage rate adjusts continuously to any change in price; then the aggregate supply curie is relatively steep, and when wage and price level are sticky,  then the short-run aggregate supply curve will be relatively flat.

You might be interested in
The demand for a product is inelastic with respond to price if:<br> a.consumers are
Step2247 [10]
Not all of the answer choices are here
5 0
3 years ago
Developing and using a budget is part of the "obtaining" component of financial planning. true false
Nikolay [14]
Ok not sure but I'm gonna have to go with true. You can research online to make sure.
8 0
3 years ago
Bryne Co. Sells merchandise and collects a 5% state sales tax. The tax is recorded on Bryne's general ledger as a(n) ______ acco
Likurg_2 [28]

The state sales tax (5%) on sales of merchandise will be recorded on Bryne's general ledger as a <u>liability</u>.

<h3>What is a sales tax?</h3>

This is an imposed taxation that is based on the purchased price of products.

In United states, the sales tax varies from state to state because every state determines its rates unlike the general federal tax rate.

In conclusion, the sales tax on sales of merchandise will be recorded on as a liability because it is an outflow on his personal account.

Read more about liability

<em>brainly.com/question/25687338</em>

8 0
2 years ago
Assume the following information: Percent Complete Milling Department Units Materials Conversion Beginning work in process inven
lora16 [44]

Answer:

Equivalent units of production for materials = 5960

Explanation:

Given:

Units transferred out = 5800

Units in ending inventory = 400

%age of completion for conversion = 40%

To calculate the equivalent units of production by using the formula:

Equivalent units of production for materials = units transferred out + ( units in ending inventory × %age of completion for conversion)

= 5800 + ( 400 × 40/100)

= 5800 + ( 400 × 0.4)

= 5800 + 160

= 5960

3 0
3 years ago
If. y =27whenx=8,find y when x=11
Alexxandr [17]
Y=30 because adding 3 on to 8 gets you 11 and you have to do the same for both x and y
7 0
3 years ago
Other questions:
  • Madeline quits her job, at which she was earning $20,000 per year. She then takes $50,000 out of savings, on which she was earni
    9·1 answer
  • A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tom
    7·2 answers
  • The journal entry to record a return of merchandise purchased on account under a periodic inventory system would be
    6·1 answer
  • A _____relationship would include your coworkers and friends
    10·2 answers
  • During 2020, Sarasota Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sarasota for
    5·1 answer
  • Which economic procedure best encourages voluntary exchange?
    15·2 answers
  • Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent o
    12·1 answer
  • Which of the following distinguishes mediation from negotiation? Group of answer choices vested authority with a third party dec
    13·1 answer
  • A major drug company anticipates that in future years it could be involved in PROBLEMS 85 litigation regarding perceived side ef
    13·1 answer
  • some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. this is an example of: group
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!