A decrease in aggregate demand causes the price level to fall. If the government takes no action to
counter this, then the actual price level will be below the price level that people expected.
Individuals will eventually correct their expectations of the price level. As they do so, prices and
wages will adjust accordingly, shifting the aggregate supply curve to the right (down). For example
if wages are sticky, in light of the lower price level, firms and workers will eventually make bargains
for lower nominal wages. The reduction in wages lowers costs of production, so firms are willing to
Answer:
b. marginal cost curve above the average variable cost curve.
Explanation:
A perfect competitive indsutry is a characterised by many firms selling homogenous goods and services. Firms are price takers and there are no barriers to entry or exit of firms in the industry.
The supply curve of a perfectly competitive firm in the short run is the part of the marginal cost curve that lies above the average variable cost curve.
A perfect competition maximises profit where price equals marginal cost.
I hope my answer helps you
The best saving account that Anthony should take is letter D, daily compounding. Daily compounding could provide him the best rate of return to his interest and this could provide him the interest that he deserves every time he deposits money on his bank account. This could not only be best in returning his interest but it could also provide the interest he deserves.
Answer: increase
Explanation:increase means to become greater in amount. more workers, more production.
