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Ratling [72]
3 years ago
12

A student was asked to draw an aggregate demand and aggregate supply graphLOADING... to illustrate the effect of an increase in

aggregate supply. The student drew the following​ graph: The student explained the graph as​ follows: ​"An increase in aggregate supply causes a shift from SRAS1 to SRAS2. Because this shift in the aggregate supply curve results in a lower price​ level, consumption,​ investment, and net exports will increase. This change causes the aggregate demand curve to shift to the right from ADl to AD2. We know that real GDP will​ increase, but we​ can't be sure whether the price level will rise or fall because that depends on whether the aggregate supply curve or the aggregate demand curve has shifted farther to the right. I assume that aggregate supply shifts out farther than aggregate​ demand, so I show the final price​ level, P3​, as being lower than the initial price​ level, P1​." Which of the following is a correct statement about the​ student's analysis? A. The student is incorrect because the aggregate demand curve does not shift because of the price level change. B. The​ student's analysis is correct. C. The student is incorrect because the price level should rise when SRAS increases. D. The student is incorrect because the aggregate demand curve should​ decrease, not increase
Business
2 answers:
UNO [17]3 years ago
3 0

Answer:

a. The student is incorrect because the aggregate demand curve does not shift because of the price level change

Explanation:

the student was wrong to show the price level P3 as being lower than the initial price level p1 there was a shift i aggregate demand curve from AD1 to AD2.  This is because a change in aggregate demand is not as a result of a change in price level. The aggregate demand curve will shift from AD1 to AD2  if these components of aggregate demand,  consumption spending, investment spending, government spending, and spending on exports minus imports increase. The curve will shift back  to the left as these components fall.

saul85 [17]3 years ago
3 0

Answer:

a. The student is incorrect because the aggregate demand curve does not shift because of the price level change.

Explanation:

The aggregate demand curve will shift to AD2 from AD1 if these components like consumption spending, government spending, investment spending and spending on exports excluding imports increase. The student is not correct to show that the price level P1 higher than the starting price level P3 there was a shift i aggregate demand curve to AD1 from AD2. Result of a change in price level does not affect change in aggregate demand. As component falls, the curve will shift back  to the left.

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: Typically required on ________ loans when the down payment is less than ______% and loan-to-value ratio is in excess of ____%.
BARSIC [14]

Answer:

Mortgage, 20%, 80%

Explanation:

Typically required on Mortgage loans when the down payment is less than 20% and loan-to-value ratio is in excess of 80%. Loans with higher LTVs don't conform to Fannie Mae/Freddie Mac guidelines, so a lender may require PMI to offset the risk.

3 0
3 years ago
In Kuehn v. Pub Zone, the intermediate appellate court whose decision is featured in the case summary ruled that the Pub Zone __
omeli [17]

Answer:

The correct word for the blank space is: did not.

Explanation:

The Kuehn v. Pub Zone is a court case where Karl Kuehn sued Maria Kerkoulas -the owner of Pub Zone bar in Union, New Jersey- because Kuehn was beaten by a motorcycle gang inside the men's bathroom of Pub Zone. Kerkoulas had knowledge of the irrational behavior of motorcycle gangs in the area though, on the day when the attack took place, the Pagan's gang surpassed security in Pub Zone yet Kerkoulas decided to attend them. Later, the gang was heading towards the back of the pub. Kerkoulas thought they were leaving but they were following Kuehn to the men's bathroom where he was seriously injured.

Kuehn sued Pub Zone and the jury awarded $300,000 in damages but the trial court judge overruled the jury's decision and Pub Zone ended up owing nothing to Kuehn. <em>The owner of a business is not the insurer of the customers and has no duty on any care of one of them until a major event occurs</em>. Then, even if Kerkoulas knew about the behavior of the motorcycle gang, she is not responsible for the care of Kuehn on the gang attacking him.

3 0
3 years ago
Mountain Teas wants to raise $14.9 million to open a new production facility. The company estimates the issue costs for legal an
ololo11 [35]

Answer:

612,936 shares

Explanation:

The computation of the number of shares of stock must be sold is shown below:

Before that we have to compute

Required sales proceeds net of spread is

= (Raise amount + estimated cost for  legal and accounting fees) ÷ (1 - spread rate)

= ($14.9 million + $582,000) ÷ (1 - 0.0815)

= ($1,5482,000) ÷ (1 - 0.0815)

= $16,855,743.06

So, shares to be sold is

= $16,855,743.06 ÷ $27.50

= 612,936 shares

8 0
2 years ago
Suppose Congress is considering raising the top federal marginal tax rate from 35% to 40%. Senator Jones believes the elasticity
KIM [24]

Answer:

Explanation:

Solution-

According to Senator Jones, the elasticity of taxable income is larger, which means that due to a certain percentage rise in taxes, the taxable income rises by a greater percentage. Also, according to Senator Smith, the elasticity of taxable income is small, which means that due to a certain percentage rise in taxes, the taxable income rises by a smaller percentage.

(I) Under Senator Jones assumptions, due to rise in taxes, the taxable income has risen considerably as compared to Senator Smith assumptions. Thus the estimates of additional revenue from the tax increase will be larger under Senator Jones assumptions, compared to Smith's assumptions.

(ii) Since under Senator Jones assumptions, elasticity of taxable income is large. So due to rise in taxes, there is a significant proportional rise in taxable income under Jone's assumptions compared to Senator Smith assumptions. Thus the costs of the tax increase is borne more under Senator Jones assumptions , compared to Smith's assumptions.

3 0
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Aleksandr [31]

Answer:

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I just did my marketing quiz, it comes out at about 1.59 so 1.6

7 0
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