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Eduardwww [97]
2 years ago
6

Suppose the economy is initially at point A. Now suppose an increase in government purchases shifts the aggregate demand curve t

o AD2. Which of the following statements best explains how the economy responds to restore long-run macroeconomic equilibrium?
Choose one answer.
a. The increase in the price level to Pbreduces real GDP demanded, shifting the aggregate demand curve back to AD1, returning the economy to its potential output at A.
b. Firms produce more in anticipation of future higher prices, thus shifting the SRAS curve upward until the gap is eliminated at D.
c. Firms and workers will negotiate higher nominal wages to restore lost purchasing power. This shifts the SRAS curve to the left until the gap is eliminated at D.
d. The increase in the price level to Pbdecreases consumption which in turn leads firms to cut production shifting the SRAS curve to the left until the gap is eliminated at D.
Business
1 answer:
UkoKoshka [18]2 years ago
7 0

Answer:

C. Firms and workers will negotiate higher nominal wages to restore lost purchasing power. This shifts the SRAS curve to the left until the gap is eliminated at D.

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Answer:

Here the correct option is A) both net export and investment.

Explanation:

When ever there is fall in the price level, it causes a fall in the price of domestic exports to other nations and on the other hand causing rise in price of foreign imports from other nations , so from this it results in the increase in exports and decrease in import of the nation, which leads to increase in net export ( which is export - import ). When there is decrease in price level,  making investment would become cheaper and more investment could be made in the opportunities available.

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Answer:

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Explanation:

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3 years ago
The following units of an item were available for sale during the year:
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Best answer


a firm has beginning inventory of 300 units at a cost of 11 each. production during the period was 650 units at 12 each. if sales were 700 units what is the cost of goods sold (assume FIFO)
4 0
3 years ago
The average erp project takes​ ___________ months to complete.
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3 years ago
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liberstina [14]

Answer:

a reduced availability of these badly needed products.

Explanation:

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In this case if ocal governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. It will result in reduced availability of the products to these areas.

Sellers tend to reduce amount supplied, due to scarcity consumers will have to buy at black market prices that are higher.

3 0
3 years ago
Read 2 more answers
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