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3 years ago

If aggregate supply is vertical, then which of the following statements must be true?

Business

1 answer:

never [62]3 years ago

6 0

Answer: A. Aggregate demand does not affect the quantity of output.

Explanation: Aggregate supply curve is perfectly vertical in a long run, Economist believed that the changes in aggregate demand only caused a temporal change in an economy output

Aggregate supply in a short run, the quantity supplies increase as price rise.

Aggregate demand does not affect the quantity of output If the aggregate supply is vertical.

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You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have t

icang [17]

Answer:

should choose option a

Explanation:

option a)

annuity due, 31 payments of $180,000 per year, 6.25% discount rate

Present value = $180,000 x 14.40432 (PV annuity due factor, 6.25%, 31 periods) = $2,592,726

option b)

$500,000 today + ordinary annuity, 30 periods, 6.25%, $144,000

present value = $500,000 + ($144,000 x 13.40432 [PV annuity factor, 6.25%, 30 periods)] = $2,430,222

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3 years ago

Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary pol

stich3 [128]

Answer:

left as well as the contractionary monetary policy, then bring about the

increase of interest rate as well as reducing equilibrium quantity of money.

Explanation:

Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.

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3 years ago

A good rule of thumb is to limit consumer credit payments to ____________ percent of your net monthly income.

frutty [35]

A good rule of thumb is to limit consumer credit payments to 20% percent of your net monthly income.

6 0

3 years ago

Suppose that the only café in town can sell five fish dinners per night at a price of $10 each. If this monopoly firm wants to s

UNO [17]

Answer:

a.$4

Explanation:

initial price of fish dinner per piece was= $10

no. of fish dinner sold = 5

total initial revenue= 5*10= $50

new price of fish dinner = $9

and now six fish dinners are sold

new revenue= 6*9= $54

therefore the marginal revenue from the sixth dinner sold= 54-50= $4

hence option a is correct

4 0

3 years ago

Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted

posledela

The Volvo of North America delivered automobile to the Siberian police force when Siberia had no cash to pay for them. It accepted by the payment in oil, which it then sold for cash to pay for media advertising in the U.S. example of counter-trade.

Answer: Option B

Explanation:

The word counter trade means it is an exchange goods or services which are paid for wholly or partly with other goods or services either than with money. However, counter trade used for accounting purposes. In this case counter trade deals between sovereign states.

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3 years ago