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nataly862011 [7]
3 years ago
9

Economists who view the AS curve as upward-sloping believe that changes on the demand side _______ result in changes in Real GDP

in the short run. Economists who view the AS curve as vertical believe that government changes from the demand side________________ to raise Real GDP in the short run
Business
2 answers:
ch4aika [34]3 years ago
7 0

Answer:

Economists who view the AS curve as upward-sloping believe that changes on the demand side <u>CAN</u> result in changes in Real GDP in the short run. Economists who view the AS curve as vertical believe that government changes from the demand side <u>CANNOT DO ANYTHING</u> to raise Real GDP in the short run.

Explanation:

In the short run, the aggregate supply (AS) curve is upward sloping because most input prices are fixed in the short run. So a change in the aggregate demand will cause the AS curve to change in the short run. If the demand increases, the aggregate supply will increase, and vice versa.

On the long run, input prices are not fixed, so the AS curve is vertical and any changes in the aggregate demand will not affect it.

Yanka [14]3 years ago
5 0

Answer:

May; cannot do anything

Explanation:

In the short run, the aggregate supply curve will react to price level, which means it is upward sloping rather than vertical. If the price level increases, quantity supplied will increase. If the price level decreases, the quantity supplied will decrease.

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The total cost​ (in dollars) of manufacturing x auto body frames is ​C(x)=60,000+400x. ​(A) Find the average cost per unit if 20
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Answer:

a) Average price per unit = 700

b) average marginal cost = -1.5 dollars/frame

c) For 201 frames are produced = $698.5

Explanation:

Given Data:

C(x) = 60000 + 400x

a) Average cost for 200 units:

Total Cost of 200 units will be:

C(200) = 60000 + 400(200)

C(200) = 140,000

Total Cost of 200 units = 140,000

Average price per unit = Total Cost / number of units

Average price per unit = 140,000/200

Average price per unit = 700

b) Marginal Average Cost:

We know that marginal cost = C^{'}(x)

And the average marginal cost = \frac{d}{dx} \frac{C(x)}{x}

So,

= the derivative of (\frac{60,000 + 400(x)}{x})

= the derivative of (\frac{(60,000)}{x} + 400)

= \frac{-60,000}{x^{2} } + 0

So,

average marginal cost = \frac{-60,000}{x^{2} }

at x = 200 units

average marginal cost = \frac{-60,000}{200^{2} }

average marginal cost = -1.5 dollars/frame

c) Average cost per frame if 201 frames are produced:

We already seen in the part b that, the average marginal cost is decreasing by 1.5 dollars /frame. So,

if 201 frames are produced the instead of 200 then the difference is of 1 frame and we discussed that average marginal cost of 1 frame is decreasing at 1.5 dollars per frame.

So,

As we know the average cost from part a = 700 dollars.

Therefore, for 201 item = 700 dollars -1.5 dollars

For 201 frames are produced = $698.5

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