I think the answer is: a shift from ADI to AD2 and a movement to point B with a higher price level and higher output.
D
Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
You would record this transaction into the accounting equation by: increasing cash and decreasing accounts receivable
<h3>
What is accounting?</h3>
Accounting refers to the process of keeping track of a company's financial transactions. Summarizing, analyzing, and reporting these transactions to oversight organizations, regulatory bodies, and tax collection organizations are all parts of the accounting process.
The financial statements that are used in accounting provide a succinct overview of all financial transactions that took place during a given accounting period, including information on a company's operations, financial situation, and cash flows.
One of the essential duties in practically any firm is accounting. In a small business, it might be handled by a bookkeeper or an accountant; in larger corporations, it might be handled by vast financial departments with dozens of staff members.
Management may greatly benefit from the data produced by different streams of accounting, including cost accounting and managerial accounting, in order to make wise company decisions.
Learn more about accounting
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Among the choices the one that has
potential benefit of inflation is <span>More business profits
</span>When inflation<span> is too high of course, it is not </span>good<span> for the economy or individuals.</span>Inflation<span> will always reduce the value of money, unless interest rates are higher than</span>inflation<span>. And the higher </span>inflation<span> gets, the less chance there is that savers will see any real return on their money.</span><span>
</span>
The central bank decreases the money supply. The relationship between the unemployment rate and the rate of inflation is one of the key concepts in economics, and the short run Phillips curve illustrates this relationship.
The relationship between this shift in the aggregate demand curve in the short run and the emergence of unemployment and inflation is shown by the curve. Additionally, it displays the short-term shift in the economy's aggregate supply curve.When the economy shifts from its short-run equilibrium to its long-run equilibrium.
The following things will occur the cost will decrease.There will be less demand for money. Note that a decrease in the moment supply will cause the moment supply to move to the left. A smaller money supply will also result in a smaller overall demand. Therefore, the price level and money demand will both decrease as the economy moves from its short-run equilibrium to its long-run equilibrium.
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