All categories

2 years ago

In the short run, an increase in the aggregate price level caused by a shift in the aggregate demand curve first causes:

Business

1 answer:

ra1l [238]2 years ago

6 0

Answer: b. movement along SRAS

Explanation:

When the price level changes due to an increase in the demand that forces the Aggregate demand curve to shift rightward, the immediate effect would be that the Aggregate demand curve would intersect the Short Run Aggregate supply at a new point.

This new point will see a movement <em>along </em>the SRAS from its previous equilibrium point to the new equilibrium intersection point with the AD curve. In other words, the new point will be on the same SRAS curve just moving from one point to another.

You might be interested in

For product X, the price elasticity of demand has an absolute value of 3.5. This means that quantity demanded will increase by

cluponka [151]

It means that quantity demanded will increase by 3.5% for every 1% decrease in price.

<h3>What is the price elasticity of demand?</h3>

Price elasticity of demand measures the percentage change in quantity demanded when the price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes. When price increases, quantity demanded decreases by more of than the percentage change in price. When price increases, the quantity demanded declines.

To learn more about price elasticity of demand, please check: brainly.com/question/18850846

5 0

2 years ago

The archeological records of egyptian cities are less detailed due to the

Elodia [21]

The archeological records of Egyptian cities are less detailed due to the building materials.

4 0

3 years ago

Guinan Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direc

Tresset [83]

Answer:

$4,200 over applied

Explanation:

For computing the over applied overhead, first we have to find out the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $327,080 ÷ 14,800 hours

= $22.1

Now we have to find the actual overhead which equal to

= Actual direct labor-hours × predetermined overhead rate

= 13,900 hours × $22.1

= $307,190

So, the overhead over applied would be

= Actual manufacturing overhead - applied overhead

= $302,990 - $307,190

= $4,200 over applied

7 0

3 years ago

HS 101 Intro to Economics Quiz

dem82 [27]

Answer:

1. B

2. A

3. B

4. C

5. B

6. A

7. D

8. C

9. B

10. A

11. A

12. C

13. D

14. B

15. B

16. C

17. A

18. B

19. A

20. D

7 0

3 years ago

Suppose you put $800 per month into a Roth IRA, that pays 8% APR (compounded monthly). Assume you have nothing saved today, calc

Olegator [25]

Answer:

Future Value = $1,192,287.56

Explanation:

<em>The future value is the expected total sum that an investment is suppose to accumulate together with interest over a period of time at a particular interest rate.</em>

Where compounding is done done monthly, he future value is determined as follows:

FV = PV ×( (1+r)^n -1 )/ r

FV - Future Value , PV - present value r- monthly rate of interest , n- number of months

FV - ?

r- 8%/12 = 0.66%

n - 30× 12 =

PV - 800

FV = 800 × ( (1.00666)^(360) - 1 )/ 00666

= 800 × 1490.359449

= $1,192,287.56

7 0

3 years ago

Read 2 more answers