The economic system is currently in long-run equilibrium. If the central bank increases the money supply, in the long operated the price level will be raised. The reason of increase in price level is the increase in national output level.
<h3>What happens when an economy is in long run equilibrium?</h3>
When an economy is said to be in long run equilibrium, Real GDP is at its productive capacity, the number of unemployed equals the natural rate of unemployment, it could be approximately 6% and the overall price level equals the expected price level.
Thus, the money supply, in the long operated the price level will be raised.
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It Is meaning that you don't spend enough time with life instead you spend more time being distracted and confused
Answer:
Science-push
Explanation:
The science push approach was the first linear model (1950s - 1960s) developed in order to explain the innovation process. It is called a linear model since it believed that innovation started with scientific discovery, then invention, engineering, manufacturing and finally the marketing of a new product.
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<u>Science-push approach</u>
basic science ⇒ research an development ⇒ production ⇒ marketing
The basic error of this model is that it doesn't consider any type of feedback at any stage.
Answer:
(a) $570
(b) $680
(c) $110
Explanation:
(a) Total revenue refers to the revenue that is obtained by selling a particular quantity of goods at a particular price.
Hot Air's total revenue when the quantity is 3 rides per month:
= Quantity of rides × Price per ride
= 3 × $190
= $570
(b) Hot Air's total revenue when the quantity is 4 rides per month:
= Quantity of rides × Price per ride
= 4 × $170
= $680
(c) Marginal revenue is defined as the revenue obtained from an additional unit sold.
In this case, it is calculated as the difference between the total revenue obtained from the 3 rides per month and the total revenue obtained from the 4 rides per month.
Hot Air's marginal revenue when the quantity increases from 3 rides to 4 rides a month:
= $680 - $570
= $110
Missing information: Market demand schedule is missing from the question. Hence, it is attached with the answer.
Answer:
It is the fluctuations of GDP around the potential output
Explanation:
Business cycle refers to the fluctuations of Gross Domestic Product around the potential output. It refers to the expansion and contraction of GDP around its potential output or its long term natural growth rate
In an boom, GDP is above the potential output and in a contraction, GDP is below the potential output
There are 4 stages of business cycle
1. Expansion - At this stage unemployment is low and economic indicators are positive. Money velocity is also high
2. Peak - this is the highest point of economic expansion. The economy cannot grow beyond this point. From this point, the GDP starts to decline
3. Recession : It is the stage after a peak. The positive economic indicators start to decline
4. Depression
Trough - growth rate becomes negative
6. recovery : the economy begins to expand again