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Lubov Fominskaja [6]
3 years ago
10

Suppose the economy is in long-run equilibrium. Then because of corporate scandal, in- ternational tensions, and loss of confide

nce in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Which curve shifts and in which direction? (a) aggregate demand shifts right (b) aggregate demand shifts left (c) aggregate supply shifts right (d) aggregate supply shifts left
Business
1 answer:
dsp733 years ago
7 0

Answer:

The answer is: b

Explanation:

In long-run equilibrium, the long run aggregate demand curve and aggregate supply curve intersect where the marginal revenue (revenue derived from selling an additional unit) and marginal cost (cost incurred from producing) an additional unit) are equal.  In the long-run equilibrium, this intersection occurs at the lowest point of the long-run average total cost curve (curve depicting the average cost per unit of production).

Holding all else constant, short run changes in the economy would not change the potential output levels. The long-run aggregate supply curve would remain fixed at the potential level of output. However, these changes: international tensions, corporate scandals and loss of confidence in policymakers would cause shifts in the aggregate demand curve since demand would be adversely affected.

Consumer confidence is the perspective or outlook that consumers have on the state of the economy. The destabilising factors given in this scenario would raise the levels of uncertainty and perceived risk, reducing the confidence levels of consumers and ultimately resulting in reduced demand. In long-run equilibrium, when demand is reduced, it is indicated by a leftward shift in the aggregate demand curve.

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Identify the trade-restraining practice that this example demonstrates. Tubifor, Inc. purchases all available imported lumber so
fomenos

Answer:

"Pursuit of monopoly power" is the correct solution,

Explanation:

  • Through a party, the shareholders of such a monopoly have had the authority to adjust rates, eliminate rivals, thereby dominate the competition within the specific geographical region.
  • Antitrust laws in the United States discourage monopolies and whatever other practices which unduly restrict competitor's commerce. The form of trade restriction shown by this illustration is the acquisition of monopoly control.

Therefore the answer to the above was its right one.

7 0
3 years ago
Read the following descriptions. Decide who demonstrates good habits. Erica has a file folder with old bills and receipts. She a
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Erica who keeps all of her records in order.
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3 years ago
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Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining
taurus [48]

Answer:

Growth rate 2.4%

Explanation:

MV=D1/(Ke-g)

Where MV=share market value=$15

D1=Dividend at year end=$.72

Ke=stock's expected rate of return=7.2%

By putting above values in formula, we get;

MV=D1/(Ke-g)

15=.72/(7.2%-g)

15*7.2%-15g=.72

1.08-15g=.72

.72-1.08=-15g

g= -.36/-15

g=2.4%

4 0
3 years ago
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The crossover point is that production quantity where: _________
Vanyuwa [196]

The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.

<h3>What is crossover point?</h3>

Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."

When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

Thus, option D is correct.

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All options are missing firm the question-

a. variable costs of one process equal the variable costs of another process.

b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

e. the process no longer loses money.

4 0
2 years ago
Beech Soda, Inc. uses a perpetual inventory system. The company's beginning inventory of a particular product and its purchases
bagirrra123 [75]

Answer:

the cost of goods sold to be recorded at January 14 is: $230 .

Explanation:

LIFO (Last in First out) method, assumes that the last goods purchased are the <em>first ones</em> to be issued to the final customer.

This means that valuation of inventory will begin using the value of the <em>earliest</em> goods purchased.

The Cost of goods sold is calculated as follows :

Cost of goods sold : 9 units × $14 = $126

                                  13 units × $8 = $104

                                  Total              = $230

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