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Alex17521 [72]
3 years ago
12

According to classical economics, a decrease in aggregate demand causes the price level to _____________ in the long run. On the

other hand, an increase in aggregate demand causes the price level to _____________ in the long run. These changes occur because of _____________.
a. increase; decrease; government intervention
b. increase; decrease; price flexibility
c. decrease; increase; government intervention
d. decrease; increase; price flexibility
Business
1 answer:
shtirl [24]3 years ago
3 0

Answer: Decrease, Increase, Price flexibility.

Explanation: According to classical economics, a decrease in aggregate demand causes the price level to DECREASE in the long run. On the other hand, an increase in aggregate demand causes the price level to INCREASE in the long run. These changes occur because of PRICE FLEXIBILITY.

In a flexible market the forces of demand and supply determines the prices of commodities in the market.

As the demand Falls the prices also fall as the demand rises the prices of commodities also rises.

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if keynes' law applies during economic contractions and say's law applies during economic expansion, how will the three goals of
Serhud [2]

If Keynes's law applies during economic contractions and Say's law applies during economic expansion, the way in which the three goals of macroeconomics would be affected is that: trade-offs and connections may differ in the short run and the long run.

<h3>What is macroeconomics?</h3>

Macroeconomics can be defined as a study of all the behaviors, performances, and factors that affect the entire economy. This ultimately implies that, macroeconomics typically focuses on aggregate phenomena such as the following:

  • Gross Domestic Product (GDP).
  • Inflation
  • Price level
  • Economic growth.

According to the law established by John Maynard Keynes, demand is an economic factor which creates its own supply. Additionally, the way in which the three (3) goals of macroeconomics would be affected are as follows:

  1. Trade-offs may differ in the short run.
  2. Connections may differ in the short run.
  3. Connections may differ in the long run.
  4. Trade-offs may differ in the long run.

Read more on macroeconomics here: brainly.com/question/29035217

#SPJ1

Complete Question:

If Keynes's law applies during economic contractions and Say's law applies during economic expansion, how will the three goals of macroeconomics be affected?

determinates of total supply for the economy will be traded-off

trade-offs and connections may differ in the short run and the long run

institutional and market structures will connect factors of production

the economy will face genuine limits to how much can be produced

5 0
1 year ago
Suppose that the Fed had followed the Taylor rule before the financial crisis of 2008. In the first quarter of​ 2007, the inflat
shutvik [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

4 0
3 years ago
Blossom Corporation issued $564,000 of 7% bonds on May 1, 2020. The bonds were dated January 1, 2020, and mature January 1, 2023
Ksenya-84 [330]

Answer:

The Journal entries are as follows:

(a) the May 1 issuance,

Cash A/c           Dr. 577,160

To Bonds - 7%                        $564,000

To Accrued interest                $13,160

(To record the issuance)

Accrued Interest = $564,000 × 0.07 × (4/12)

                             = $13,160

(b) the July 1 interest payment,

Interest Payment A/c   Dr. $19,740

To cash A/c                                       $19,740

(To record the interest payment)

Interest payment = $564,000 × 0.07 × (6/12)

                             = $19,740

(c) the December 31 adjusting entry

Interest payable A/c    Dr. $19,740

To Bonds - 7%                                  $19,740

(To record the adjusting entry)

7 0
3 years ago
One suggestion is to explain Management by Objectives to your management staff. What is the KEY idea
horrorfan [7]

Answer:

just manage

Explanation:

7 0
3 years ago
]To estimate the percentage of defects in a recent manufacturing​ batch, a quality control manager at Daimler minus Chrysler sel
krek1111 [17]

Answer:

Answer is option A, i.e. systematic sampling.

Explanation:

Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.

3 0
3 years ago
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