The SRAS curve is upward rising because:

Business

1 answer:

alexandr1967 [171]3 years ago

6 0

Answer:

B) a higher aggregate price level leads to higher output since most production costs are fixed in the short run.

Explanation:

In the short run suppliers are willing to produce or supply more output at higher prices because their costs are fixed in the short run and in order to increase output they will need to face more fixed costs so they will only increase output if the prices increase so that they can be profitable. For example a cement factory producing at maximum capacity cannot produce more output as they will need to increase their capacity to do so, so when they increase their capacity their fixed costs rise and they will need to increase prices in order to be profitable, so in the short run only when prices increase, the producers will increase capacity or output.

You might be interested in

You want to invest in a stock that pays $5.00 annual cash dividends for the next four years. At the end of the four years, you w

V125BC [204]

Answer: $27.90

Explanation:

Discount the dividends and the price you will sell the stock at in 4 years at 12%.

The dividends are a constant and so can be treated as annuities.

= (5 * Present value factor of annuity, 4 years, 12%) + 20/(1 + 12%)⁴

= (5 * 3.0373) + 12.71036

= $27.90

5 0

3 years ago

Joe signed a listing agreement with Marisa. A week later, Marisa’s co-worker, Tina, showed Joe a property that he’s interested i

kumpel [21]

Answer:

Explanation:

Start earning $78/hourly for working online from your home for few hours each day... Get regular payment on a weekly basis... All you need is a computer, internet connection and a little free time... Read more here..>>>> www.Nifty2.com

8 0

3 years ago

Which option is an example of labor as a factor of production?

ANTONII [103]

The answer you’re looking for is OD hopes this helps !

5 0

3 years ago

Present three examples that illustrate how all decisions involve trade-offs

satela [25.4K]

It is probably safe to say that most if not all decisions involve trade-offs. For example a person may be offered a job that pays well but requires 7 days per week for a month and while this is good for a younger person with no other commitments it may not work for an older person with his own family commitments and other projects. Another decision could be that for support, a husband decides to not take on major time consuming projects while his wife is doing intensive studying to become certified in a field of her choosing so that he can support her. Another example is that when one cannot drive one's son with a disability to a beach to swim because it is too far and uses too much car gas, the money saved on gas some of it could be spent on his groceries.

7 0

4 years ago

Read 2 more answers

The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the F

WARRIOR [948]

Answer: decreases

Explanation: The following practice is done by the central bank in the situation of inflation when there is an excess supply of money in the economy.

The central bank tries to decrease the funds by selling the govt bonds to the banks. This results in decrease in funds from banks as they have to buy such bonds from their respective funds.

6 0

3 years ago