Answer:
Output will be lower
Explanation:
Supply shock is an economic event that occurs because of sudden changes in the supply of goods and services within an economy.
A negative supply shock will shift the SRAS to the left and it will increase the price of the good and decrease the quantity, the new equilibrium will be at lower output and higher inflation.
When the economy suffers a permanent negative supply shock, the supply may keep on increasing or decreasing rapidly.
If the central bank does not respond by changing the autonomous component of monetary policy, then the output will be lower.
This is because permanent supply shock will lead to higher prices which disrupts the production and hence the output falls.
The correct answer to your question is : <span>A law is passed whereby a mandatory retirement age of 60 is imposed</span>
Answer:
The standard hours allowed for May production would be 2,250 hours
Explanation:
In order to calculate the standard hours allowed for May production we would have to calculate the following formula:
Standard Hours allowed = actual Units / Budgeted units * Budgeted Labour Hours
actual Units=900
Budgeted units=1,000
Budgeted Labour Hours=2,5000 hours
Therefore, Standard Hours allowed =900/1,000 * 2,500 = 2,250 Hours
Standard Hours allowed = 2,250 Hours
The standard hours allowed for May production would be 2,250 hours
Answer:
The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.
Explanation:
Comparative advantage is an advantage an individual, organization or country has to use <em>opportunity costs</em> in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.
In the example proposed:
- Comparative advantage of Macro islands in fishing boats =
- Comparative advantage of Micro islands in fishing boats =
- Comparative advantage of Macro islands in jars =
- Comparative advantage of Micro islands in jars =
Thus, <em>the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.</em>
Answer:
True
Explanation:
this is to ensure deeper understanding.