Answer:
is producing at a point where output is less than potential GDP.
Explanation:
When the unemployment is high it is obvious that the economy is under its potential level but there is inflation case so we need to know the meaning of Philips Curve. The aggregate demand and aggregate supply model provides a simple summary of the possible outcomes proposed by the Phillips curve. The Phillips curve shows the combination of inflation and unemployment arising when the economy of the aggregate demand curve in the short run shifts along the short-term aggregate supply curve. Increased demand for goods and services will lead to higher prices in the short term and increased output of goods and services. Increasing output means increasing employment and lowering unemployment. In addition, the higher the rate this year, the higher the rate of inflation, no matter what the price level is in the past. Thus, the change in aggregate demand leads to short-term changes in inflation and unemployment rates, which is consistent with the dependence described in the Phillips curve. Monetary and fiscal policy tools are used to influence the aggregate demand curve, that is, to move the economy along the Phillips curve. Increasing money supply, government spending, or tax cuts move the aggregate demand curve to the right and drives the economy to a point where the Phillips curve corresponds to lower unemployment and higher inflation. Reducing money supply, government spending, or raising taxes will push the aggregate demand curve to the left, while the economy shifts to the point where Phillips curves with lower inflation and higher unemployment. In this sense, the Phillips curve offers policymakers a set of combinations of inflation and unemployment.
Answer:
A. a systematic approach to understand the organization
Explanation:
Business diagnosis can be defined as a strategic technique which typically involves the process of defining, identifying and classifying the various business processes, logistics, product quality in order to have an indepth understanding and knowledge about an organization.
The diagnostic process is a systematic approach to understand the organization because it involves critically studying all its aspects and areas.
Hence, the information gathered through the diagnostic process can be used by the management to facilitate its decision-making process and its competitive advantage.
Answer:
$7,899,827
Explanation:
The computation of the maximum increase in money supply is shown below:
Data given in the question
Additional value in excess reserves = $868,981
Reserve ratio = 11%
By considering the above information, the maximum increase in money supply is
= Additional value in excess reserves × 100 ÷ reserve ratio
= $868,981 × 100 ÷ 11
= $868,981 × 9.09
= $7,899,827
Answer:
A)not negate the logical basis for trade in the Ricardian model.
Explanation:
Trade can be regarded as basic economic concept which involves the buying as well as selling of goods and services, having a compensation that is been paid by a buyer to a seller.
The Ricardian model can be regarded as model that incorporates the standard assumptions of a perfect competition. This model in it's simplest form give assumption of two countries that are producing two goods, but uses one factor of production, the goods here are usually assumed to be identical, or to be homogeneous, within as well as across countries. It should be noted that when there is higher wage, there will be greater number of workers that are willing to work and vice versa, which defined the relationship between wages and productivity. productivity gives the
measurement of how efficiently labor
is been utilized when producing goods and services.
It should be noted that If labor productivities were exactly proportional to wage levels internationally, this would not negate the logical basis for trade in the Ricardian model.
Answer:
the value of the MktRS (market rate of substitution) is 0
Explanation:
The computation of the market rate of substitution is shown below:
Since it is mentioned that
You like apples half as pears
So the equation would be
X = 1 ÷ 2 Y
X ÷ Y = 1 ÷ 2
Now the market rate of substitution of the price is
= $2 ÷ $4
= 1 ÷ 2
So,
= 1 ÷ 2 - 1 ÷ 2
= 0
Hence, the value of the MktRS (market rate of substitution) is 0
The same is to be considered
