Answer:
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
Explanation:
The Keynesian aggregate supply curve is mostly horizontal (flat) because a decline in aggregate demand will always result in a decline in aggregate production (supply). In other words, during a recession, companies are willing to supply (produce and sell) all the products and services that their consumers demand at a given price. Even if the price does not change, if aggregate demand decreases, aggregate supply will also decrease.
That is why Keynesian economists argue that governments must intervene during economic recessions.
Answer: The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.
Explanation: An inferior good is a good whose demand reduces as income increases. It's demand has an inverse or negative relationship with income. Therefore as the income of the individual increases, the demand for an inferior good reduces. On a graph, the reduction in demand is depicted by an inward shift of the demand curve or a shift of the demand curve to the left to show a reduction in demand. Income is one of the factors that leads to a shift in the demand curve. The income elasticity would be negative
Answer:
The cost price is the price you buy a product for. You need to compare the cost price to the selling price to know whether you got a profit or loss (did you make money or did you not).
If you don't know the cost price, you don't know whether you have a profit or loss. Of course everyone wants a profit (make money) so to determine a selling price the cost price is important.
Answer:
Modified Internal Rate of Return (MIRR) is higher than the discount rate. Therefore, this offer should be accepted.
Explanation:
Find the given attachment
Machines, materials and money are all considered to be factors of production. The correct option among all the options given in the question is option "D". For any kind of production on a large scale to be successful, money is highly important. With that money the materials needed for production can be bought and machines will help in large scale production. So all the three are interconnected.
