1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
krok68 [10]
3 years ago
10

How does the dynamic model of aggregate supply and aggregate demand explain​ inflation? A. by showing that if total spending in

the economy grows faster than total​ production, prices will rise B. by showing that increases in labor productivity usually lead to increases in prices C. by showing that if total production in the economy grows faster than total​ spending, prices will rise D. None of the above.
Business
1 answer:
boyakko [2]3 years ago
4 0

Answer:

The correct answer is option A.

Explanation:

The dynamic model of aggregate supply and aggregate demand shows that if an economy the total spending in the economy increases faster than total production, there will be a shortage. This shortage will cause the price level to increase and will ultimately lead to inflation.  

When the increase in aggregate demand is greater than the increase in aggregate supply, it will create a shortage in the economy. The demand for goods and services will be more than the supply of goods and services. This will cause the price level to increase.

You might be interested in
The North American Free Trade Agreement Group of answer choices is an example of the unilateral approach to free trade. eliminat
otez555 [7]

Answer:

reduced trade restrictions among Canada, Mexico and the United States.

Explanation:

The North American Free Trade Agreement reduced trade restrictions among Canada, Mexico and the United States.

The goal of The North American Free Trade Agreement was to eliminate barriers to trade and investment between the U.S., Canada and Mexico.

The implementation of NAFTA brought the immediate elimination of tariffs on more than one-half of Mexico's exports to the U.S. and more than one-third of U.S. exports to Mexico

6 0
3 years ago
A customer who sold a bond at a loss must wait how long before he can buy back a substantially identical bond and not have the s
Lelu [443]
A customer who sold a bond at a loss must wait how long before he can buy back a substantially identical bond and not have the sale classified as a wash sale? 
30 days. 

8 0
2 years ago
The IRS assessed a large tax and penalty against Karl. Karl retained Roger, the CPA who prepared the tax returns, to challenge t
soldi70 [24.7K]

Answer:

d.economic duress

Explanation:

The economic duress in simple terms means a party who is entering into a contract frightens or threatens of cancelling the contract or does not act according to the terms of the contract unless the other party in the contract agrees to their demands.

In the context, the conduct of Roger against Karl is probably can be called as the 'economic duress' as Roger informs Karl before the deadline of filing the response that he will not represent himself against IRS unless Karl enters into a deal of an expensive retainer agreement. Thus it is an economic duress that Roger is showing and forcing Karl to agree on his demands.

7 0
3 years ago
What role does competition play in business and global trade?
Darya [45]

Answer:

Its always a competition

Explanation:

People use to complete on how the world gets and receives items same in business, companies compeate all the time trying to get the most money, visitors, and promotions.

5 0
2 years ago
MM Proposition II with taxes: Group of answer choices explains how a firm's WACC increases with the use of financial leverage. r
schepotkina [342]

Answer:

explains how a firm's WACC increases with the use of financial leverage.

Explanation:

According to the MM Proposition II with taxes, the cost of equity rises with the increases use of debt in the capital structure of a firm.  

r_{e} = r_{o} +( r_{o}  - r_{d} ) × \frac{D}{E}

As cost of equity increases, the firm's WACC increases also

The  MM Proposition I with taxes reveals how utilizing the tax shield on debt causes an increase in the value of a firm

4 0
3 years ago
Other questions:
  • The herfindahl index suppose that three firms make up the entire wig manufacturing industry. one has a 50% market share, and the
    10·1 answer
  • January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 41,000 of its common shares at $9 each. T
    9·1 answer
  • Identify financial statement by type of information) Butler Tech, Inc., is expanding into India. The company must decide where t
    5·1 answer
  • Outpuit AFC AVC ATC MC 1 $300 $100 $400 $100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 7 43
    7·1 answer
  • Which of the following is an econmic need
    12·1 answer
  • Lucy's Music Emporium opened its doors on January 1, 2015, and it was granted permission to use the same depreciation calculatio
    11·1 answer
  • An attorney came to work on a Saturday. When he signed in, he was advised by the morning security guard employed by the building
    15·1 answer
  • Dante worked 10 hours per week at a grocery store last school year, earning minimum wage. His parents claim him as a dependent o
    10·1 answer
  • A project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2
    11·1 answer
  • Describe how hrd is linked to the overall goals and strategies of an organization
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!