Answer:
a.the price level is higher than expected making production more profitable.
Explanation:
The sticky wages shows that the output increases if the price level is higher because an increase in price level increases the profitability and the increased profitability increases output.
Answer:
If the government sets out to make home buying easier for more people by forcing lenders to accept LOWER down payments and LOWER interest rates, the result will likely be an INCREASE in housing prices
Explanation:
If either interest rates or down payment amounts lower, the quantity demanded for houses will increase a little, possible leading to a small increase in the prices of houses.
If both interest rates and down payment amounts lower, then the quantity demanded for houses should increase a lot, which will result in an increase in the prices of houses.
This happened during the first decade of our century and everything was fine until the interest rates started to increase and people could no longer pay their mortgages and BOOM, the economy busted.
Answer:
Cash cow
Explanation:
Boston consulting group (BCG) Matrix: It is a framework created for the strategic position of the business and its potential. It classifies business units into four categories of a cash cow, Stars, question mark and Dogs on the matrix of the growth rate of industry and relative market share. This matrix is also known as the growth-share matrix.
In the BCG matrix, If business unit lies in the category of a Cash cow, then it is considered as market leader as it generates more income and company are able to get a good return out of investment in this business unit. In the matrix, the Business unit have high market share, however, it has less growth prospect.
In the given case, Mega-Big Corp has been manufacturing components of automobiles and has been extremely profitable for 18 years, therefore, Mega-Big Corp. is most likely considered a cash cow.
Answer: Great Depression
Explanation:
The Great Depression was an economic depression that took place worldwide which was as a result of the crash in the stock market. The Great Depression brought about reduction in GDP of countries due to the fall in demand of goods and services.
John Maynard Keynes created the aggregate expenditures model based primarily on the Great Depression. This method is used to calculate the GDP for a country.
