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4 years ago

Exhibit 9-1 Refer to Exhibit 9-1. If the economy is self-regulating, the price level is:_________.

Business

1 answer:

victus00 [196]4 years ago

5 0

Answer: b) lower in long-run equilibrium than in short-run equilibrium.

Explanation:

A self regulating economy will try to move to the long run Equilibrium.

From the graph attached you will notice that the Price Level at the point where the Long Run Curve intersects with the Aggregate Demand curve is lower than the point where the Short Run Supply curve intersects with the same Aggregate Supply.

This means that Prices in the long term at equilibrium will be less than prices in the short term at Equilibrium should the Economy be a self regulating type that will move towards a long term Equilibrium.

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The intermediate goods are not counted in the calculation of GDP, because: * 2 points A. that involves double-counting. B. these

7nadin3 [17]

Answer:

A. that involves double-counting.

Explanation:

Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.

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3 years ago

Assuming no fixed costs are avoidable in the short run, a perfectly competitive firm's short-run supply curve is A. the portio

Crazy boy [7]

Answer:

C. the portion of its marginal cost curve that lies above its average variable cost curve.

Explanation:

It follows the short-run supply curve of the firm is portion of its marginal cost curve which is above the average variable cost curve.

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3 years ago

A 4.9 percent corporate coupon bond is callable in 10 years for a call premium of one year of coupon payments. Assuming a par va

NeTakaya

Answer:

$1,049

Explanation:

Data given in the question

Par value = $1,000

Interest rate = 4.9%

Time period = 10 years

So, by considering the above information, the price paid to the bond holder is

= Par value + Par value × rate of interest

= $1,000 + $1,000 × 4.9%

= $1,000 + $49

= $1,049

Hence. the price paid to the bond holder is $1,049

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3 years ago

While taking courses at a community college, Patrice also spends time each week assisting at her town's community center. Patric

alexira [117]

Answer:

While taking courses at a community college, Patrice also spends time each week assisting at her town’s community center. Patrice aides the community center leaders and learns about how the center works. Although she is not paid for this time, she hopes to begin a full-time job at the community center after finishing her courses. Patrice’s time at the community center is called

Explanation:

D. an internship

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3 years ago

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Answer:

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Explanation:

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3 years ago

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