All categories

4 years ago

If actual output exceeds potential output for a prolonged period of time, we would eventually expect factor prices to:

Business

1 answer:

Andru [333]4 years ago

7 0

Answer:

The correct answer is option A.

Explanation:

The potential output represents the full employment level of output. If the actual output is greater than the potential output level for a long time, it implies that the economy is experiencing inflation.

In the case of inflation, the general price level rises, so the factor prices will rise as well. This increase in factor prices will further increase the cost of production.

This increase in the cost of production will consequently cause the supply to decrease shifting the SAS or short-run aggregate supply curve to the left.

You might be interested in

Which of the following encourages consumers to choose a specific brand by offering a short-term price break?

ololo11 [35]

Answer:

(E). Rebates

Explanation:

A price break is a reduction in price of goods to encourage purchase.

Rebates may be offered in form of a return of a portion of the cash paid, to a customer after purchase has been made, or as a discount on price of goods during purchase.

This is done to encourage consumers to make purchases.

3 0

4 years ago

As inventory and property plant and equipment on the balance sheet are consumed, they are reflected: Select one: a. Both as an e

Sergio [31]

<u>E)</u><u> As an expense on the income statement.</u>

<h3><u>An expense is what?</u></h3>

The operating costs incurred by a business in order to produce revenue are referred to as expenses. According to a proverb, "making money costs money."

Paying suppliers, paying employees, leasing facilities, and depreciating equipment are examples of frequent costs. Businesses are permitted to deduct tax-deductible expenses from their taxable revenue on their income tax returns in order to reduce their tax liability. However, there are tight guidelines set forth by the Internal Revenue Service (IRS) regarding which costs companies may deduct.

Learn more about cash flows with the help of the given link:

brainly.com/question/23471523?referrer=searchResults

#SPJ4

5 0

2 years ago

Jason works as a financial investment advisor. He collects financial data from clients, processes the data online to calculate t

Aleks04 [339]

Answer:

Real-time processing

Explanation:

According to the <em>TPS (transaction processing system)</em>, real-time processing provides information that is relevant at the time of inquiry.

Since the transaction is individual, the system provides the response (output) without any delay.

In order to complete his task and provide relevant info, Jason uses real-time processing to provide investment information to clients. This kind of processing is common for such applications, where there are lots of continuous variables included (and they change frequently).

3 0

3 years ago

Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Ve

Semmy [17]

Answer:

d) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway

Explanation:

i believe its D but im not exactly sure

8 0

3 years ago

Angelo was all set to start his new business. Although he did not have as much cash as he would have liked, he figured that once

Mrrafil [7]

Answer:

The answer is undercapitalization

Explanation:

It is evident that the business is undercapitalized. Undercapitalization is a situation when a company/firm does not have enough or the needed funds to run the business operations or pay his creditors.

Angelo is undercapitalized because her sales are not generating the needed cash flows coupled with her inadequate capital. So she needs to raise enough capital or develop new strategy to increase her sales.

4 0

3 years ago