A perfectly elastic supply curve is: Group of answer choices upward sloping to the right. vertical. horizontal. downward sloping
1 answer:
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Answer:
Price today = $26.54
Explanation:
The price of the stock can be calculated using the Dividend Discount Model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula to calculate the price of the stock is attached.
Price today = 2.1 * (1+0.08) / (1+0.11) + 2.1 * (1+0.08) * (1+0.06) / (1+0.11)^2 +
2.1 * (1+0.08) * (1+0.06) * (1+0.04) / (1+0.11)^3 +
[(2.1 * (1+0.08) * (1+0.06) * (1+0.04) * (1+0.02)) / (0.11 - 0.02)] / (1+0.11)^3
Price today = $26.54
The <u>aggregate demand</u> curve shifts <u>right</u>, output <u>increases</u>, and prices <u>increase</u> when the U.S. government doubles its spending on health care.
Aggregate demand or AD refers to the total demand for all individual goods and services.
The aggregate demand and supply for an economy can be depicted by a schedule, a curve, or even an algebraic equation. Just like the demand and supply for individual goods and services.
The total quantity of all goods and services that the economy demands at various price levels is illustrated by the aggregate demand curve.
Therefore, if the U.S. government doubles its health care spending, the aggregate demand curve shifts right, output rises, and prices rise.
Know what happens when there's equilibrium or when supply and demand meet: brainly.com/question/1342403
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