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schepotkina [342]
3 years ago
14

Consider a business cycle theory that combines the classical âIS-LM model with the assumption that temporary changes in governme

nt purchases are the main source of cyclical fluctuations. According to thisâ theory, what happens after a temporary increase in government purchases to each of the followingâ variables?
a. Employment
b. The real wage
c. Average labor productivity
d. Investment
e. The price level
Business
1 answer:
docker41 [41]3 years ago
5 0

Answer: The answer is given below

Explanation:

The IS-LM model, simply is an acronym which represents "investment-savings" and the "liquidity preference of money supply". The model indicates the interaction between market for economic goods and the loanable funds market which is also called the money market.

The variables are explained below:

a. Employment: A rise in the spending expenditure will result into an increase in the current or future taxes which will have an effect on the workers by making them poorer and therefore making them offer their services to the labor market. This will lead to a rise in labor supply.

b. The real wage: Due to the increase in labor supply, the real wage will reduce because the supply of labor will be more than the demand.

c. Average labor productivity: The marginal productivity of labor or production function is not influenced by fiscal policy changes.

d. Investment: There will be a leftward upward shift of the LM curve. Due to increase in price of goods and services, and the fall in real money supply, the interest rate will rise therefore making investment to reduce.

e. The price level: Demand for output is more than the full employment level of output. This will bring about increase in price.

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nadezda [96]

The question is incomplete. The complete question is :

​Bradley's Copiers sells and repairs photocopy machines. The manager needs weekly forecasts of service calls so that he can schedule service personnel. Use the actual demand in the first period for the forecast for the first week so error measurement begins in the second week. The manager uses exponential smoothing with α ​= 0.1 . Forecast the number of calls for week​ 6, which is next week. Week Actual Service Calls 1 2 3 4 5 The forecast for week 6 is ___ service calls. ​(Enter your response rounded to two decimal​ places.)

Solution :

It is given that :

The manager of Bradley's Copiers needs weekly forecast of the service calls so that the manager can schedule service personnel.

Using the \text{actual demand} for the 1st \text{period for the forecast} for the 1st week so as the error measurement begins in the second week.

The exponential soothing, α ​= 0.1

Week       Actual service calls     Forecast

1                    28                                 28

2                   34                             (28 + 0.1 x (28-28))  = 28

3.                  38                             (28 + 0.1 x (34-28))  = 28.60

4.                  27                             (28.60 + 0.1 x (38-28.60))  = 29.54

5.                  25                             (29.54 + 0.1 x (27-29.54))  = 29.29

6                                                    (29.29 + 0.1 x (25-29.29))  = 28.86

Therefore, the forecast for the week 6 = 28.86

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postnew [5]

Answer:

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the high cost of domestic labor.

Explanation:

An entity's ability to be globally competitive in the face of foreign manufacturers with low cost of labor is not helped by the high cost of domestic labor.  The cost of direct labor forms part of the computations for the cost of a product and its pricing.  Cheaper imports are more affordable to consumers than local products, thus causing consumers to prefer imports to domestic products.

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irina [24]

Answer:

Answer is A.

Explanation:

they don't change

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lilavasa [31]

Answer:

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How did speculative investing weaken the stability of the stock market
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The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks. 
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