Answer:
The correct answer is the second option: The price level is constant in the long run.
Explanation:
To begin with, the concept of the <em>"aggregate supply"</em> refers to the total amount of goods and services that firms are willing and are able to offer at a certain price level given and at a determine period of time. Moreover, at the long-run the aggregate supply curve is not affected by many variables as it is in the short run and this is due to the fact in the long run the economy is said to be at full capacity and optimally and also because the changes in the aggregate demand are only affective in the short run to the economy's total output.
Answer:
Multiplier = 3.33
Explanation:
Investment / Spending Multiplier denotes increase in Income multiple times increase in causal Investment.
Multiplier = Change in Income / Change in Investment = 1 / 1 - MPC
<em>M</em> = ΔY/ΔI = 1/ (1-MPC)
At Equilibrium, Investment = Savings = 750. Change in Investment = 900 - 750 = 150. Change in Income = 500.
M = 500/150 = 3.33
3.33 = 1/(1-MPC)
MPC = 0.70
Answer:
the answer is: B) improve productivity by reducing turnover.
Explanation:
The efficiency weigh theory states that when employers increase their employees' wages above average market wages, they will earn higher profits due to:
- An increase in labor productivity since the employees are very motivated to work in the company and employee turnover decreases.
- The increase in labor productivity and the decrease in employee turnover will offset the increase in costs due to higher wages.
Answer:
total or effective demand for good or service
total quantity of output firm will produce
