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Natasha_Volkova [10]
3 years ago
14

Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp rise in the stock market, an increase

in government purchases, an increase in the money supply and a decline in the value of the dollar. In the short run a. the price level and real GDP will both rise. b. the price level and real GDP will both fall. c. neither the price leave nor real GDP will change. d. All of the above are possible.
Business
1 answer:
Snowcat [4.5K]3 years ago
8 0

Answer:

All of the above are possible.

Explanation:

Discussions here center on equilibrium of an economy in a long run, and here after the government activities, their is a decline in dollar value; therefore in the short run, the price level and real GDP will both rise in as much as the price level and real GDP will also both fall. It is also gathered that neither the price leave nor real GDP will change.

The transition from the short run to the long run may be done by considering some short run equilibrium that is also a long run equilibrium as to supply and demand, then comparing that state against a new short run and long run equilibrium state from a change that disturbs equilibrium, say in the sales tax rate, tracing out the short run adjustment first, then the long run adjustment.

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3 0
3 years ago
Read 2 more answers
How does a change in a​ country's real exchange rate affect its net​ exports?
Gnom [1K]

Answer: (C) When a​ country's real exchange rate appreciates​, it imports more and exports less​, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

8 0
3 years ago
You place an order for 1,600 units of Good X at a unit price of $53. The supplier offers terms of 2/30, net 50. a-1. How long do
andre [41]

Answer:

a-1. How long do you have to pay before the account is overdue?

  • 50 days

a-2. If you take the full period, how much should you remit?

  • if you pay after the discount period (first 30 days) but before the 50th day, you must pay $84,800

b-1. What is the discount being offered?

  • 2% if you pay within 30 days

b-2. How quickly must you pay to get the discount?

  • you have up to 30 days to pay the invoice and still get the discount

b-3. If you do take the discount, how much should you remit?

  • $83,104

c-1. If you don’t take the discount, how much interest are you paying implicitly?

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c-2. How many days’ credit are you receiving?

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7 0
3 years ago
You are looking at three different job options, one in Pennsylvania, one in Texas, and one in New York. The offers are as follow
tamaranim1 [39]

Answer:

Texas will be a better option as the net pay after income tax is higher than the other cities.

Explanation:

To consider the after-tax wages we must subtract the income taxes from the salaries:

Pennsylvania after tax income: 62,000 x (1-3.07%) = 60,096.6

Texas after tax income:                                                 64,000

New York after tax income:   68,000 x ( 1 - 6.85%) =  63,342

5 0
3 years ago
Powers Corporation has provided the following information for its most recent month of operation: sales $16,000; ending inventor
Elza [17]

Answer:

The beginning inventory was  $2000.

Explanation:

First, we need to calculate the Cost of Goods sold. The cost of Goods sold is the difference between the Sales and the gross profit. Thus, the cost of goods sold is 16000 - 10000  =  $6000

The value of the beginning inventory for the period can be calculated by using the Cost of Goods sold formula. The cost of goods sold is calculated as:

Cost of goods sold = Beginning inventory + Purchases - Closing Inventory

Plugging in the available figures in the formula,

6000  =  Beginning Inventory  +  8000  -  4000

6000 = Beginning inventory + 4000

6000 - 4000 = Beginning Inventory

Beginning Inventory = $2000

7 0
3 years ago
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