1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex_Xolod [135]
3 years ago
8

In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price leve

l in the economy deviates from the expected price level. Several theories explain how this might happen.
For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do, in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100. If the actual price level turns out to be 110, the firm's output prices will___________ , and the wages the firm pays its workers will remain fixed at the contracted level. The firm will respond to the unexpected increase in the price level by_________ the quantity of output it supplies. If many firms face similarly rigid wage contracts, the unexpected increase in the price level causes the quantity of output supplied to ___________ above the natural level of output in the short run.
Business
1 answer:
timofeeve [1]3 years ago
5 0

Answer:

1.  Rise

2.  Increasing

3.  Rise

Explanation:

For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do, in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100. If the actual price level turns out to be 110, the firm's output prices will RISE, and the wages the firm pays its workers will remain fixed at the contracted level. The firm will respond to the unexpected increase in the price level by INCREASING the quantity of output it supplies. If many firms face similarly rigid wage contracts, the unexpected increase in the price level causes the quantity of output supplied to RISE above the natural level of output in the short run.

The above explanation is the reason why the aggregate supply curve slopes upward in the short run

You might be interested in
Listing the pros and cons for each of your options is a part of which step in the decision-making process?.
fenix001 [56]

Answer:

Listing the consequences of each option.

Explanation:

8 0
2 years ago
Upland Motors recently paid a $1.48 per share annual dividend. Dividends are expected to increase by 2.5 percent annually. What
gregori [183]

Answer:

$13.19

Explanation:

Data given

Annual dividend = $1.48

Increase percentage annually = 2.5%

Discount rate percentage = 14%

The computation of price is shown below:-

Price = Dividend ÷ (Cost of equity - Growth rate)

= ($1.48 × 1.025) ÷ (0.14 - 0.025)

= $1.517 ÷ 0.115

= $13.19

Therefore for computing the price we simply applied the above formula.

3 0
3 years ago
Which of the following statements is not true about an evaluative interview?
Natasha2012 [34]
The correct answer is B. 

The interviewer will be taking notes with recommendations for the next person in the process, since the interviewer won't be the sole person making the rejection/acceptance decision.
4 0
3 years ago
Read 2 more answers
MC Qu. 97 The standard materials cost to produce... The standard materials cost to produce 1 unit of Product R is 7 pounds of ma
OleMash [197]

Answer:

total direct materials cost variance is $6,000 Favourable

Explanation:

first we get here Standard cost to manufacture

Standard cost to manufacture 6,000 units is = 7 × $47 × 6,000

Standard cost = $1,974,000

and

now we get here Actual cost to manufacturing

Actual cost to manufacturing 6,000 units is = 41,000 × $48

Actual cost = $1,968,000

and

now we get here Direct material cost variance that is express as

Direct material cost variance = Standard cost - Actual cost         ..........1

put here value

Direct material cost variance = $1,974,000 - $1,968,000

Direct material cost variance = $6,000 Favourable

4 0
2 years ago
Structural unemployment is caused by: Group of answer choices people losing a job when their skills become obsolete due to techn
Tanzania [10]

Structural unemployment is caused by <u>people losing a job when their skills become obsolete due to technological innovations.</u>

  • People who wish to work but are unable to obtain job are said to be experiencing structural unemployment. The abilities of the workers and the talents that businesses required do not match in structural unemployment.
  • Because the abilities of the workforce won't change despite advances in technology, if technological breakthroughs improve, there will be structural unemployment.
  • As a result of their inability to keep up with modern technology, they are losing their jobs.
<h2>What is Structural unemployment?</h2>

A mismatch between the skills of the jobless and the jobs that are available is referred to as structural unemployment. It differs from cyclical unemployment in that it results from factors other than the business cycle. 1 It happens when an underlying economic shift makes it challenging for some people to find work. It is more difficult to reverse than other forms of unemployment.

Learn more about types of structural unemployment at brainly.com/question/17272067?referrer=searchResults

#SPJ4

3 0
2 years ago
Other questions:
  • Clement applies for a home loan at Global Bank Inc. As part of the process, he provides his personal details to the banker who i
    11·1 answer
  • Issa water makes up roughly what percentage of your total bodyweight? 35% 25% 60% 70%
    6·1 answer
  • Where should essential oils be placed for use in tandem with steam treatments?
    5·1 answer
  • Monarch Company uses a weighted-average perpetual inventory system, and has the following purchases and sales: January 1 20 unit
    12·1 answer
  • A SWOT analysis involves an analysis of factors internal to the company, which include _____ as well as factors outside the comp
    8·1 answer
  • Penguin Island produces capital goods and consumption goods. Suppose its economy experiences growth. In this case, growth means
    11·1 answer
  • Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, wh
    15·1 answer
  • On March 1, the actual cash received from cash sales was $36,006, and the amount indicated by the cash register total was $36,01
    12·1 answer
  • Does anyone else like tyler, the creator or is it just me ..?
    14·1 answer
  • An investment firm provides its customers mobile applications that significantly simplify traditional investing activities. For
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!