The complete question is
In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100.
B) the difference between $12.5 trillion and $12.0 trillion.
C) LAS minus SAS at a price level of 100.
D) AD1.
The Answer is option B the difference between $12.5 trillion and $12.0 trllion.
Explanation:
The inflationary gap is calculated by subtracting anticipated GDP from real GDP of the economy. The x-axis represent the national income and y-axis represent the expenditure.
It is the excess of aggregate demand over its level required to maintain full employment equilibrium in the economy. in the figure AD2 represents the aggregate demand curve.
Thus, inflationary gap when AD2 is aggregate the demand curve equals the difference between $12.5 trillion and $12.0 trillion.
Answer:
- The possibility of traveling from coast to coast in the US in under a week ⇒ SECOND INDUSTRIAL REVOLUTION
- Feedback loops ⇒ BOTH
- The internet ⇒ NEITHER
- The flying shuttle ⇒ NEITHER
- The steam engine ⇒ FIRST INDUSTRIAL REVOLUTION
- Railroads ⇒ BOTH
- Telegraph ⇒ SECOND INDUSTRIAL REVOLUTION
- A technological (as opposed to political) revolution ⇒ SECOND INDUSTRIAL REVOLUTION
Explanation:
The first industrial revolution took place between 1760-1830 (roughly) and its main characteristics were the industrialization of production processes using stream power.
The second industrial revolution took place between 1870-1914 (beginning of WWI). Production processes were enhanced as well as the production of steel. Even though some systems were invented much earlier, during the second industrial revolution they became "popular" and were adopted in many places and became common things, e.g. railroad networks, telegraph and telephone, water systems, sewage, electricity, and even pencils.
Answer:
Price; marginal cost; cost minimizing; output; Cost of production or cost of inputs involved in production
Explanation:
In perfect competition a firm is in equilibrium when its marginal cost of production is equal to the price of its product. The firm will be able to maximize profit or minimize cost at this point.
The demand curve is a horizontal line, which means demand is perfectly elastic. A change in the price will cause the demand to become zero.
The cost mentioned here is the cost incurred to employ inputs in the process of production, which is an explicit cost.
Answer: 14.2
Explanation:
CAPM 0.142 or 0.06 x (0.11-0.05)
Answer:
$22.75
Explanation:
Calculation for what they need to limit the material and labor costs
Using this formula
Limits for material and labor costs =Product price-(Contribution margin percentage ×Product price)
Let plug in the formula
Limits for material and labor costs=$35-(35%×$35)
Limits for material and labor costs=$35-$12.25
Limits for material and labor costs=$22.75
Therefore what they need to limit the material and labor costs will be $22.75