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rosijanka [135]
3 years ago
10

Economist Brown believes that changes in aggregate demand affect only the price level, and economist Black believes that changes

in aggregate demand affect only Real GDP. What does the aggregate supply (AS) curve look like for each economist?
Business
1 answer:
n200080 [17]3 years ago
4 0

Answer:

Economist Brown : Perfectly Inelastic (Vertical) Aggregate Supply

Economist Black : Perfectly Elastic (Horizontal) Aggregate Supply

Explanation:

Economy is at equilibrium where : Aggregate Demand = Aggregate Supply.

Aggregate Demand is downward sloping curve, as aggregate demand is inversely related with price. Increase in AD shifts the AD curve rightwards.

Aggregate Supply is usually upward sloping curve, as it is directly related to price. However, as per given special cases by Economists Black & Brown, it is as undermentioned :

  • Black : AD increase (rightwards shift) increases only price if - Aggregate Supply is perfectly inelastic i.e non respondent to price & AS curve is vertical.

Real GDP is the total value of goods & services produced by an economy, valued at constant base prices. Increase in real GDP implies increase in production quantity.

  • Brown : AD increase (rightwards shift) increases only Real GDP (quantity) if - Aggregate Supply is perfectly elastic (infinitely respondent to price, so prices constant) & AS curve is horizontal.
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Marysya12 [62]

Answer:

Applet's flexible budget variance for total costs is $5,140  unfavorable variance since actual is higher than budgeted cost

Explanation:

Flexible budget variance for total costs=actual total costs-budgeted total costs of 72 connectors

actual total costs of 72 connectors=$19,000

budgeted total costs of 72 connectors=budgeted fixed cost+budgeted total variable cost of 72 connectors

total budgeted variable cost=72*$130=$ 9,360.00  

budgeted fixed cost is $4,500

Budgeted total costs of 72 connectors=$9,360.00+$4,500.00=$ 13,860.00  

Flexible budget variance =$ 13,860.00-$19,000.00=$5140  unfavorable variance

5 0
4 years ago
Tim's Taxi Service sold one of its cabs for $9,000. The cab had an original cost of $23,000 with $16,000 in accumulated deprecia
natta225 [31]

Answer:

The recognized gain is $2000

Explanation:

The carrying value of the cab sold is the difference between the original cost of $23,000 and the accumulated depreciation of $16,000, hence, carrying value is $7000($23000-$16,000)

The cash proceeds from the disposal of then cab are $9000

Gain on disposal of cab=$9000-$7000

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6 0
3 years ago
Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond,
Lynna [10]

Answer:

Check the explanation

Explanation:

Bond             Cur.Yld.      Vol.   Close      Net Chg.  

Doh! 9 ½ 18     9.0          5      105 1/2      - 1/4  

Doh! 8 ½ 21     9.4        10      90 1/4        -1/2  

 

 

1.  As given in question:  

Closing Price of the first bond:    =105.5*10  

 =1055  

 

Closing Price of the second bond:  =90.25*10  

 =902.5

2.  Yesterday's price for first bond:  =(105.5+0.25)*10

 =1057.5  

 

Yesterday's price for second bond:  =(90.25+0.5)*10

 =907.5

3.  kindly check the attached image below to see the solution to question 3

4.  Capital Gain Yield for first bond  =(P1-P0)/P0

 =(1055-1057.5)/1057.5

 =-0.236%

7 0
3 years ago
The production era marked a time when companies were able to increase their profits because they were able to decrease their pro
ollegr [7]

Answer:

true

Explanation:

it was the time of the production line making it easy to make expensive things with people that are lower skilled and cheaper overall

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3 years ago
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Tpy6a [65]
A barrier to entry is any factor that makes it difficult for a new firm to enter a market. 
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4 years ago
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