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
rosijanka [135]
2 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]2 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.
You might be interested in
NDS Industries is evaluating a project with an initial investment at Time 0 of $640,000. The present value of the levered cash f
RoseWind [281]

Answer: $67600

Explanation:

Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:

NPV = $157000

Add : Initial investment = $640000

Present value of cash inflow = $797000

Less : Present value of Levered cash flow = $729400

Amount borrowed = $67600

Therefore, the amount borrowed is $67600.

3 0
3 years ago
What is plan procurements?
il63 [147K]
The process of documenting project procurement decisions specifying the approach and identifying potential sellers   

3 0
3 years ago
What are you paying for when you lease a car? A.the purchase price of the car
N76 [4]

Answer:

D

Explanation:

when you lease a vehicle, your monthly payment will be calculated based on the vehicle's depreciation, or the change between its current value and its value at the end of the lease obviously plus interest and fees. .

5 0
2 years ago
An important social trend is the continued concern for health and well-being in the United States. This is most likely evidenced
yulyashka [42]

An important social trend is the continued concern for health and well-being in the United States is most likely evidenced by the introduction of fitness trackers such as the Fitbit.

<h3>What is social trend?</h3>

It should be noted that social trend simply means

the movement of a particular trend or its growth.

In this case, an important social trend is the continued concern for health and well-being in the United States is most likely evidenced by the introduction of fitness trackers such as the Fitbit

Learn more about social trend on:

brainly.com/question/2926894

#SPJ1

7 0
2 years ago
Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting
s2008m [1.1K]

Answer:

The amount of uncollectible account expense was recorded for July was $9,500

Explanation:

According to the given data we have the following:

Accounts written off amount=$5,200

Increase in Allowance for Doubtful Accounts=$4,300

Therefore, in order to calculate the  amount of uncollectible account expense was recorded for July we would have to make the following calculation:

Uncollectible accounts expense for July= Accounts written off+ Increase in Allowance for Doubtful Accounts

Uncollectible accounts expense for July= $5,200+$4,300

Uncollectible accounts expense for July=$9,500

The amount of uncollectible account expense was recorded for July was $9,500

3 0
3 years ago
Other questions:
  • On January 1, 2017, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a
    15·1 answer
  • During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit cri
    10·1 answer
  • 2. Distinguish between economic and non-economic wants.
    15·1 answer
  • Which of the following is NOT an employer responsibility stated in OSHA’s Bloodborne Pathogens Standard?
    15·1 answer
  • Catherine wanted to purchase a digital camera. Hence, she visited an online retailer's website to learn more about the different
    10·1 answer
  • In this type of control system, the master budget is based on a single prediction for sales volume, and the budgeted amount for
    7·1 answer
  • ASC Topic 235, Notes to Financial Statements
    7·1 answer
  • Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8%, and coupons are pa
    10·1 answer
  • Will award brainliest for correct answer
    6·1 answer
  • CHAPTER 8, TEST A
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!