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Nat2105 [25]
3 years ago
7

Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, and

neither. Households decide to save a larger share of their income. Florida orange groves suffer a prolonged period of below-freezing temperatures. Increased job opportunities overseas cause many people to leave the country.
Business
1 answer:
ruslelena [56]3 years ago
6 0

Answer:

1. Households decide to save a larger share of their income. - Aggregate-Demand Curve

If households in the economy started saving more of their money then this would leave less money for consumption which is one of the components of Aggregate Demand. When Consumption decreases so also will Aggregate Demand thereby shifting the Aggregate-Demand Curve to the left.

2. Florida orange groves suffer a prolonged period of below-freezing temperatures. - Short-run Aggregate Supply Curve

With the Florida Orange Groves suffering from below freezing temperatures, the oranges will not grow as much leading to a poor harvest. This will reduce the supply of oranges in the economy and shift the short-run Aggregate supply curve left.

3. Increased job opportunities overseas cause many people to leave the country. Both Aggregate-Demand Curve and Short-run Aggregate Supply Curve.

With less people in the Economy, there will be less people spending on goods and services which will cause the Aggregate Demand curve to shift to the left.

Also with people leaving the country, the labor force will decrease which will mean that less people are available to produce goods and services so the short-run Aggregate supply curve will shift left.

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PSYCHO15rus [73]

Answer:

The correct answer is letter "B": personal ethics.

Explanation:

Personal ethics refers to the moral principle people consider inherent in themselves that drive their behavior. These principles extend to every aspect of their lives and are mainly noticeable in the professional field. Respect, honesty, integrity, and fairness are some examples of personal ethics.

8 0
3 years ago
A candidate for political office announces the following policies which, he says, economics clearly demonstrates will lead to hi
Leto [7]

Answer:

1. False 2. True

Explanation:

1. The candidate for political office announcing that the policy to reduce immigration from abroad which, he says, economics clearly demonstrates will lead to higher output in the long run; is false.

What increases output are the factors of production of which labor is a major component. When there are more people willing and able to work in an economy, <u>they help companies to produce more output but that is not the case when immigration is reduced, obviously that would reduce productivity and output.</u>

<u />

2. However his second claim is right, that making trade more open between the US and other countries will increase output on the long run.

Trade barriers like tariffs and duties impede the level of trade between countries which could either reduce the amount of money countries make after netting off custom duties or the price of imported goods are increased by the effect of tariffs. Increased price means reduced demand

<u>Hence if tariffs are replaced with subsidies in open trade, prices of U.S imported goods will fall and demand will increase.</u>

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7 0
3 years ago
Read 2 more answers
If any of you are having problems we can talk go ahead let everything out i'll help you!
Harlamova29_29 [7]

Answer:

thank you !

Explanation:

i might need to use thins soon haha

thanks,

~mina

8 0
3 years ago
The use of debt in the firm's capital structure will increase ROE if the firm:_____.
DIA [1.3K]

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

8 0
3 years ago
A change in the asset turnover ratio from 1.3 to 1.6 would indicate a. a decrease in the effectiveness of assets in producing sa
Zarrin [17]

Answer:

a decrease in the effectiveness of assets in producing sales by a favorable trend in using assets to generate sales.

Explanation:

Assets turnover ratio = \frac{Net Sales}{Average assets}

Therefore when the ratio increases it means the level of sales has increased, with a higher rate than earlier.

Now also with this it reflects that the effectiveness of assets in producing sales as by a favorable trend, as higher the ratio more favorable it is, as depicts higher sales.

7 0
3 years ago
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