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4 years ago

Why is the LRAS curve vertical?

2 answers:

8 0

The LRAS curve is vertical because the quantity of real GDP supplied is independent of the changes in the price level.

Explanation:

The aggregate supply curve is the relationship between the overall price level and the total output which is a part of an economy that it wishes to produce.

Prices are flexible in the long-run but sticky in the short-run.
Intuitively, a country's GDP level is too large to be significantly affected by price changes.
The Long-Run Aggregate Supply Curve(LRAS) is vertical on the graphic model which represents the market for final goods and services.
The LRAS curve is also vertical at the full-employment level of output because this is the amount that would be produced once prices are fully meet its requirements.

The Long-Run Aggregate Supply curve is vertical because the changes incurred does not affect the GDP'S long-run growth which contains resources, supplies and labor force.

frozen [14]4 years ago

5 0

<h3>LRAS curve is vertical due to the rate of inflation does not impact real GDP </h3>

Explanation:

The long-run aggregate supply curve (LRAS) is vertical because the rate of inflation does not impact real GDP's long-run determinants, which include supplies of labor, capital, and natural resources. It is simply applying the classical dichotomy and monetary neutrality.

The long-run aggregate supply curve at potential GDP is vertical, which is the amount of GDP reached when the economy operates in full employment. It is expected that GDP will always reach this level in the long run as the economy is driven by full employment, as it is a level that is realistic and long-term sustainable.

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List the four steps in the response model for answering behavioral interview questions

ahrayia [7]

Be nice no foal language

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3 years ago

Mike is arrested at a warehouse in North Industrial Park and is charged with the crime of theft. Mike will be prosecuted bya. th

Sati [7]

Answer:

Mike will be prosecuted by a;

c. a public official

Explanation:

To better answer the question we need to define some key terminologies;

1. Industrial park

An industrial park is an area that is set aside usually in a city for industrial development. Residential and commercial developments are not allowed in these zoned areas.

2. Prosecutor

A prosecutor is a legal representative of the prosecution. The prosecution is the legal team charged with the duty of presenting the case against someone accused of breaking the law.

3. Public official

A public official is any individual nominated or elected to represent the public through the state. Any person who holds a legislative, administrative or judicial post is a public official. They are usually charged with authority to handle certain duties.

In our case, Mike was arrested and charged with the crime of theft. The prosecutor has to be a public official who needs to represent the prosecution in presenting the case against the accused: in this case it's Mike who was accused of theft.

4 0

4 years ago

The Moore Corporation had operating income (EBIT) of $700,000. The company's depreciation expense is $140,000. Moore is 100% equ

Nastasia [14]

Answer:

The net cash flow is $560,000

Explanation:

The computation of the net cash flow is shown below:o

= Operating income + depreciation - tax expense

= $700,000 + $140,000 - $280,000

= $560,000

The tax expense is calculated by

= Operating income × tax rate

= $700,000 × 40%

= $280,000

For computing the net cash flow, we have to add the depreciation expense and deduct the income tax expense.

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4 years ago

At the shipping port in Savannah, Georgia, the large shipping boxes that arrive on superfreighters from Indonesia are unloaded d

KonstantinChe [14]

Based on the large shipment of big shipping boxes and making direct unloading to a train car for further transport has shown the simplification of transport as a result of:

Containerization

<h3>What is Containerization?</h3>

This refers to the use of intermodal freight transport where cargoes are used in the transport of goods with the use of freights and superfreighters.

With this in mind, we can see that containerization has globally simplified the transport of products from <em>one mode of shipping</em> to another.

Read more about containerization here:
brainly.com/question/13161794

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3 years ago

Duluth Co. collected a $6,000 cash advance from a customer on November 1, 2016 for work to be performed over a six-month period

uysha [10]

Answer:

c. Decrease liabilities and increase revenues.

Explanation:

Duluth Co. collected a $6,000 cash advance from a customer on November 1, 2016 for work to be performed over a six-month period beginning on that date.

If the year-end adjustment is properly recorded, the effect of the adjusting entry on Duluth's 2016 financial statements will be a decrease in liabilities and increase in revenues.

This will be the case because when Duluth Co. collected a $6,000 cash advance from a customer on November 1, it would have passed the following entries:

Dr Cash................$6000

Cr Prepaid Revenue...$6000

But note that 'prepaid revenue' is a liability which is why it has a credit balance.

By year end, the adjustment will be to take credit to revenue for 2 months that has elapsed for November and December, which is 2/6 x $6000.

Hence the entry will be:

Dr. Prepaid Revenue.....$2000

Cr. Revenue....................................$2000

which implies that the liability of prepaid revenue has reduced and revenue has increased

4 0

3 years ago