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vichka [17]
2 years ago
10

Suppose a supply shock shifts the aggregate supply curve from AS1 to AS2, and decreases output below full employment. If the Fed

then decreases the money supply, it will Group of answer choices decrease the price level and shift the aggregate demand curve to the right until output returns to its full-employment level stabilize the price level and return output to its full-employment level stabilize the price level, but cause a further decline in output increase both output and the price level return output to its full-employment level, but at the expense of an increase in the price level
Business
1 answer:
Tomtit [17]2 years ago
7 0

Answer: Stabilize the price level, but cause a further decline in output

Explanation:

If the Fed decreases the money supply, there will be less money in the economy therefore people will demand goods and services less.

This will shift the Aggregate demand curve to the left where it will intersect with the AS2 curve at a price level lower than the price level as a result of the supply shock thereby stabilizing the price level.

This would however, result in a further drop in output as there is now less demand for goods so suppliers will produce less.

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The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi
ValentinkaMS [17]

Answer:

Process Costing

Explanation:

Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.

7 0
3 years ago
Money that has been or will be paid regardless of the decision whether to proceed with the project is:
bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0
2 years ago
A recent high school graduate is researching ways she can pay for her college education. She has received three small scholarshi
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Answer:

C and D

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3 0
2 years ago
An operation that closes due to an imminent health hazard can reopen only after getting approval from what agency?
Inessa05 [86]

Answer:

<u>the FDA (U.S. Food and Drug Administration)</u>

Explanation:

The Food and Drug Administration is a federal agency, which is allowed under US law to prevent an operation from going on if it determines that an imminent health hazard still exists.

However, according to the FDA food code, <em>"if immediate corrective action is taken, there is no "Imminent Health Hazard," meaning</em> the operation can get approval from the agency to reopen.

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3 years ago
A utilities consumer action panel could help resolve consumer complaints about high energy costs because the panel members are
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The answer is A independent and unbiased
7 0
3 years ago
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