Economists call this a change in demand as the curve is directly linked to the demand of the product. When the demand goes up or down the curve moves left or right accordingly.
In the Philip's curve the long run usually refers to the vertical line and the rate of unemployment the short run Philips curve denotes inflation and is in L shaped and the relationships indicates the trade-off between the inflation and the unemployment
Explanation:
This curve in general shows the relationship between the rate of increase in the nominal wages and the rate of unemployment and usually lower the rate of inflation higher will be the wages allotted and it will be the vice versa
There will be a shift in the Philips curve when there is a hike in the oil prices abroad and this will cause the curve to shift leftwards so in the long run it will indicate the unemployment rate and in the short run it will indicate the inflation rate
Answer:
Joshua statement is correct.
Explanation:
Marginal cost:
Is the cost of producing a new unit.
Average Cost:
If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.
This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.
The largest proportion of federal revenues comes from C. Personal income taxes.
