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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.

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Describe at least three ways you will implement your project to soften the impact of the issue on the community
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3 years ago
10 times as as 100 is
Kazeer [188]
The answer to this is 1000
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3 years ago
Emily Corporation purchased all of Ace Company's common stock on January 1, 2020, for $1,000,000 cash. The investee's stockholde
Reika [66]

Answer:

$ 1,125,000

Explanation:

Calculation for the amount of Equity Income that Emily will record

First step is to find the Net equity income using this formula

Net equity income= Net income +Dividends

Let plug in the formula

Net equity income=$250,000+$25,000

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Second step is to find the balance of investment using this formula

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Let plug in the formula

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5 0
3 years ago
Following is selected financial information from General Mills Inc. for its fiscal year ended May 27, 2018 ($ millions). Cost of
vaieri [72.5K]

Answer:

General Mills, Inc.

Income Statement for the year ended May 27, 2018

Revenue                                        $22,036.6

Cost of goods sold (COGS)              14,438.1

Gross profit                                      $7,598.5

Total expenses, other than COGS    4,490.1

Income before tax                            $3,108.4

Income tax expense                               80.2

Net income                                      $3,028.2

Explanation:

a) Relevant Data:

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Cost of goods sold (COGS) $14,438.1

Total expenses, other than COGS $4,490.1

Income tax expense $80.2

8 0
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