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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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Bonnie Austin, age 30, used to work part time in a local restaurant. This year she quit her job to take care of her five-month-o
sergiy2304 [10]

Answer:

The survey conducted by the Bureau of Labor Statistics today will count Bonnie as not in the labor force .

Explanation:

" not in the labor force " -

The people who are not employed and even are not unemployed are called the " not in the labor force " .

The people who are present in this category are the -

  • retired peoples ,
  • students
  • The people taking care of children ,
  • people who are not working but searching for job ,

All of them fall in this category .

Hence , according to the survey , Bonnie is under the category of " not in the labor force " .

3 0
3 years ago
Sunland Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $564 to
Jobisdone [24]

Answer:

  • 1. Paid $38 for an oil change.

$38 Maintenance Expenses  - DEBIT

$38 Cash - CREDIT

  • 2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.

$564 Delivery Trucks - DEBIT

$564 Cash - CREDIT

Explanation:

1. Paid $38 for an oil change  

$38 Maintenance Expenses  - DEBIT

$38 Cash - CREDIT

An oil change it's just an expenses of maintenance, which goes as General Expenses directly to the Income Statement.  

 

2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.  

$564 Delivery Trucks - DEBIT

$564 Cash - CREDIT

The installations of shelving units it's an improvements in the company's fixed assets, therefore, assets improvements are activated as fixed assets in the non-current assets section of the balance sheets.  

6 0
3 years ago
What is the balance of the manufacturing overhead account and is overhead underapplied or overapplied at the end of the year?.
baherus [9]

The balance of the manufacturer overhead account is Credit of $30,000, overapplied.

  • credit of $30,000, overapplied.

<h3>Underapplied Overhead vs. Overapplied Overhead</h3>

Underapplied overhead is the opposite of overapplied overhead. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. This means that a company comes in under budget and achieves a lower amount of overhead costs during the accounting period.

Therefore, the correct answer is as given above.

learn more about overhead account from here:

brainly.com/question/26396695

3 0
2 years ago
You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,
larisa86 [58]

Answer:

$202,137.90  

Explanation:

Year Annual payment Discount factor  Present value  

1 $28,000          0.965250965 $27,027.03  

2 $32,000          0.931709426         $29,814.70  

3 $66,000          0.899333423         $59,356.01  

4 $99,000          0.868082454 $85,940.16

Total present value                                         $202,137.90  

The discount factor should be computed by  

= 1 ÷ (1 + interest rate)^years  

where,  

rate is 3.6%  

Year = 0,1,2,3,4 and so on  

6 0
3 years ago
What are the things found in a bank​
alexandr402 [8]

Sentences......

Writing.....

Poems.....

Drawing......

Cursive......

Words......

Or just a blank.....

4 0
3 years ago
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