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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

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USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS. On Jan. 1st Sally buys a computer with her credit card for $500. This transac
algol [13]

Answer:

Credit card float is the difference in time between the date of purchase and date when the payment is due.

Credit card Float = 54 days

Explanation:

The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.

This is exactly like in depreciation 'available for use date' and 'date of use'

available for use is used to calculate depreciation, so we start on the purchase date.

on the date when payment is due

we have 25th of Feb and the 23rd of Feb the date of payment

we take 23rd the date of payment

just like in assets if  an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.

Therefore the float period is between 1 jan and 23 feb = 54days

7 0
2 years ago
an owner of a small publishing company allowed a friend who was starting a handmade soap business to load the publishing company
Liono4ka [1.6K]

Handmade soap business to load the publishing company's copy of Microsoft word onto the friend's computer. this activity is both illegal and unethical.

What is business?
An organisation or enterprising entity engaged in business, industrial, or professional activities is referred to as a business. A business's goal is to coordinate some form of economic production (of goods or services). Businesses can indeed be for-profit corporations or charitable organisations working to advance a social cause. Businesses range in size and scope from small, local enterprises to large, global conglomerates. A person's efforts and activities to produce and sell products and services for a profit are also referred to as business. An organisation that runs for commercial, industrial, as well as professional purposes is frequently referred to as a business. The concept starts with a name and an idea, and in-depth market research may be necessary to ascertain whether it is feasible to turn this same idea into a profitable.

To learn mroe about business
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3 0
1 year ago
Maxine wishes to purchase a pair of running shoes made by her favorite brand. Her budget is limited, and she notices shoes made
ANTONII [103]

Answer:

The correct answer is The price of the alternative was too high.

Explanation:

The market price is the price at which a good or service can be purchased in a free market. It is an economic concept of application both in historical aspects of the discipline and in its concrete use and in daily life.

The concept has given rise to both technical and theoretical discussions in the development of economic sciences. These discussions range from the definition of what a market is to what is understood by price, difficulties that acquire a particular importance in the microeconomics, an area in which one of the most important functions of an economist is the determination of prices that maximize profit of a company. However, the problem also extends to the macroeconomic sphere, in which price calculations play a central role in determining the hypothetical economic balance.

8 0
3 years ago
What is the hourly wage of an orthodontist in 2012
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2 years ago
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You put up $80 at the beginning of the year for an investment. The value of the investment grows 2% and you earn a dividend of $
Evgen [1.6K]

If the value of the investment grows 2% and you earn a dividend of $8.00. Your HPR was 12%.

<h3>HOLDING PERIOD RETURN (HPR)</h3>

Using this formula

HPR=Investment grow+(Dividend/Beginning investment)

Let plug in the formula

HPR=2% + ($8/$80)

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Therefore If the value of the investment grows 2% and you earn a dividend of $8.00. Your HPR was 12%.

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