Answer:
C) It is a vertical line at $600 billion of GDP
Explanation:
Aggregate supply is the total value of goods and services that companies established in a country are willing to produce and sell for each price level over a given period of time. It is therefore the sum of the supply curves of each firm.
Potential GDP, in turn, is the value of all final goods and services produced by an economy over a given period of time when all factors of production (capital and labor) are being tapped. It is the maximum production point of an economy. In this example, the potential GDP is 600 billion.
In the long run, an increase in the general price level does not affect aggregate production. Thus the aggregate supply curve of an economy represents the sum of all supply in a situation in which all factors of production are employed. This makes the vertical aggregate supply curve at 600 billion.
The budget constraint of Antoni based on the information is <u>25f + 50e = 200</u>
The budget constraint simply means a boundary of the opportunity cost. It represents all the combinations of goods that a person will buy at a price based on the income that the person has.
Based on the information given,
<em>Income = $200</em>
<em>Cost of food platters = $25 each </em>
<em>Cost of entertainment = $50 per hour</em>
Therefore, the budget constraint based on the above will be 25f + 50e = 200 where<em> f = food platters and e = entertainment.</em>
Read related link on:
brainly.com/question/25076850
Considering the situation described above, if country A has a comparative advantage in producing good X over country B, then: <u>the domestic opportunity cost of producing X in country A is lower than in country B.</u>
<h3>What is Opportunity Cost?</h3>
Opportunity cost is often used in economics to describe the profit lost when one choice or option is taken over another.
<h3>What is Comparative Advantage?</h3>
Comparative Advantage is the term used to describe the economy's capacity to produce a specific good or service at a lower opportunity cost than its trading competitors.
Therefore, given that country A has a comparative advantage in producing good X over country B, this equates to country A having a lower opportunity cost than country B.
Hence, in this case, it is concluded that the correct answer is option C.
Learn more about Opportunity Cost here: brainly.com/question/3611557
Answer:
12%
Explanation:
The computation of the accounting rate of return is shown below:
Accounting rate of return = Average profit ÷ Average investment
where
Average profit is
= $1,500 × 5 years ÷ 5 years
= $1,500
And, the average investment is
= $25,000 ÷ 2
= $12,500
So, the accounting rate of return is
= $1,500 ÷ $12,500
= 12%
We simply applied the applied formula