All categories

3 years ago

The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?

Business

1 answer:

zhuklara [117]3 years ago

7 0

Answer:

The stick price theory helps to explain the upward sloping shape of the aggregate supply curve.

Explanation:

The price tends to be sticky for a number of reasons.

Firms will need to incur menu costs if they constantly change prices
Frequent change in prices may annoy the customers
The wage rates remain the same even after change in price because the wages are based on contracts

The short-run aggregate supply curve is upward sloping because of the stickiness of price, there is a positive and direct relationship between output and price. Due to the high expected price level in the short run, the firms will expect the input prices to rise along with an increase in the product price.

To counter the increase in inputs price, the product price is kept high. The higher price provides motivation to produce more. That's why the short-run aggregate supply curve is upward sloping.

You might be interested in

Question 2 (5 points) Based on the following data, determine the amount of total assets, total liabilities, and net worth. Liqui

IgorLugansk [536]

Answer and Explanation:

The computation of the total assets, total liabilities and the net worth is shown below:

Total assets = liquid assets + investment asset + household assets

= $3,200 + $7,340 + $97,890

= $108,430

The total liabilities is

= Current liabilities + long term liabilities

= $1,670 + $70,230

= $71,900

So, the net worth is

= Total assets - total liabilities

= $108,430 - $71,900

= $36,530

3 0

2 years ago

If you spend $400 on a new phone and it

Anvisha [2.4K]

Answer:

who knows??

Explanation:

bla bla bla ballalalallalalallalalal

7 0

2 years ago

Which behavior demonstrates courtesy toward others in the workplace?

Alecsey [184]

The behavior which demonstrates courtesy toward others in the workplace is, consulting with a coworker before intervening in one of his or her projects.

Answer: Option D.

Explanation:

Courtesy is being polite and kind. It means showing politeness in ones behavior. So the most appropriate behavior of courtesy in workplace is mostly certainly consulting before involving in his/her project.

Asking before intervening is important so as to avoid any conflict between the workers and it is also a good gesture towards other co workers. This thus demonstrates the courtesy towards others. Consulting shows respectfulness towards the other person, thus resulting in courtesy behavior.

8 0

3 years ago

The balance sheet for Gelher Company reports the following information on July 1, 2022. GELHER COMPANY Balance Sheet (partial) L

d1i1m1o1n [39]

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $2,000,000

Loss on early retirement on bonds A/c Dr $85,000

To Cash A/c $2,040,000 ($2,000,000 × 1.02)

To Discount on bonds payable A/c $45,000

(Being the redemption of bond is recorded)

The loss on early retirement on bond is computed below:

= $2,040,000 - $1,955,000

= $85,000

8 0

3 years ago

Which of the following is an example of a capital market instrument? Group of answer choices Banker's acceptances. Commercial pa

stealth61 [152]

Answer:

Preferred stock

Explanation:

The capital market instruments refer to the instrument that involves stock, bonds, debentures, the preferred stock that deals in the securities and come under the capital

Also, the other options that are mentioned are the money market examples

Therefore the correct option is preferred stock and the same is to be considered

8 0

3 years ago