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horrorfan [7]
3 years ago
15

27. The aggregate supply curve has a significantly different curve or arc to it than the aggregate demand curve. What is one of

the key reasons for the different shape of the aggregate supply curve?
Business
1 answer:
gizmo_the_mogwai [7]3 years ago
7 0

Answer:

Aggregate Supply = National Income

Explanation:

Aggregate Demand is total value of goods & services buyers are planning to consume. In a closed un-intervened economy : AD = Consumption (C) + Investment (I) ,C is positively related with income (Y) & I assumed to be autonomous .

So the AD curve (plotted against Y) has an upward sloping curve (∵Y, C +ve relationship) having intercept on Y axis (∵ equal to autonomous C, I).

Aggregate Supply AS is the total value of goods & services producers are planning to sell. It is equal to National Income because : this producers' desired/ planned production level yields incomes which is distributed as factors incomes to factors of production. And, Income is either consumed or saved . So AS = C + S (Saving)

Hence , AS (C+S) plotted against Y , is an upward sloping 45° line . Because such line has a special feature of having equal distance from X & Y axis & the things magnitude on both axis is equal , like Y = AS (i.e C +S)

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In a competitive market with identical firms, A. firms cannot earn positive economic profit in either the short run or long run.
Ksenya-84 [330]

Answer:

The answer is C.

Explanation:

In a competitive market, all firms produce identical goods and services. No firm or seller can influence the prevailing market price. To increase their revenue, firms must increase their outputs.

In this industry, firms make economic profit(revenue minus accounting cost minus implicit cost) in the short run but this economic profit reduces to zero in the long run because more firms that are attracted by the short run profit can enter the industry freely. Firms can also exit with little or no cost.

4 0
3 years ago
Lucas Laboratories' last dividend was $1.50. Its current equilibrium stock price is $15.75, and its expected growth rate is a co
Elis [28]

Answer:

Expected dividend yield = 10.0%

Expected capital gains yield =  5.0%

Explanation:

D0 = $1.50 (Given)

E(D1) = D0 * (1 + g) = $1.50 * (1.05) = $1.575

E(P0) = $15.75 (Given)

E(P1) = $15.75 * (1.05)1 = $16.5375

Expected dividend yield = E(D1) / E(P0)

= $1.575 / $15.75 = 0.100 = 10.0%

Expected capital gains yield = (E(P1) - E(P0)) / E(P0)

($16.5375 - $15.75) / $15.75 = 0.050 = 5.0%

4 0
3 years ago
Currently digby is paying a dividend of $19. 67 (per share). if this dividend were raised by $3. 64, given its current stock pri
Oliga [24]

Given its current stock price the dividend yield would be 42.39%.

Given,

Digby is paying a dividend of $19. 67 (per share)

Dividend were raised by $3. 64

Dividend yield = Dividend per share / Market price per share.

As there is no share price given, I shall assume that the share price is $100. The new share price will be:

= 100 * (1 + $3. 64)

= $464

The Dividend yield would then become:

= 19.67 / 464

= 42.39%

The dividend yield will be calculated on the basis of the dividend per share divided by the market price per share and this will be calculated on the basis of the percentage.

To learn more about dividend yield here:

brainly.com/question/18687546

#SPJ4

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