All categories

3 years ago

The long-run aggregate supply curve would shift left if the amount of labor available

Business

1 answer:

liq [111]3 years ago

8 0

Answer:

The correct answer is option a.

Explanation:

The long run aggregate supply curve is inelastic and vertical in shape. The reason behind this is that in the long run the output level is not affected by the change in price level. It is rather affected by the quantity of inputs.

A leftward shift in the long run aggregate supply means that the output level is decreasing. This decrease in input in this case is either because of decrease in quantity of labor available,or because of increase in minimum wages the firms are hiring less labor.

So, option a is the correct answer.

You might be interested in

Wavy Company had a beginning work in process inventory balance of $ 32 comma 900$32,900. During the year, $ 54 comma 700$54,700

vampirchik [111]

Answer:

The ending work in process inventory balance is $3,120

Explanation:

Ending work in process inventory =

Beginning Work in progress inventory + Direct materials + Direct labor + Manufacturing overhead (applied) – Cost of goods manufactured

Beginning Work in progress inventory =$32,900

Direct materials = $54,700

Direct labor = $64,100

Manufacturing overhead (applied) = 120% * $64,100 = $76,920

Cost of goods manufactured = $225,500

Ending work in process inventory = $32,900 + $54,700 + $64,100 + $76,920 - $225,500

= $3,120

Therefore, The ending work in process inventory balance is $3,120

3 0

3 years ago

Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As aresult, smokers who live in Wyoming start pu

fomenos

Answer:

a. People respond to incentives.

Explanation:

Assuming the state of Wyoming passes a law that increases the tax on cigarettes thereby causing smokers who live in Wyoming to start purchasing their cigarettes in surrounding states.

Consequently, an increase in the tax on cigarettes altered the behavior of the smokers in Wyoming, it made them to purchase from neighboring states.

This illustrates or reflect the fact that people respond to incentives.

6 0

3 years ago

A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility th

77julia77 [94]

Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.

3 0

3 years ago

Pharoah Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. Duri

never [62]

Answer and Explanation:

The Journal entry is shown below:-

On November 2022

Cash Dr, $193,200 (6,900 × $28)

To Unearned Subscription Revenue $193,200

(Being the receipt of the subscriptions is recorded)

Therefore to record the receipt of the subscriptions we simply debited the cash as it increased the assets and we credited the unearned subscription revenues as increased the liability so that the correct posting could be done

3 0

3 years ago

You expect General Motors (GM) to have a beta of 1.3 over the next year and the beta of Exxon Mobil (XOM) to be 0.9 over the nex

professor190 [17]

Answer:

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

GM has a higher beta and thus it has a higher systemic risk

total risk is measured by volatility. The higher the volatility, the higher the total risk . GM has a higher volatility

3 0

3 years ago