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jenyasd209 [6]
3 years ago
13

Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expa

nsionary fiscal and monetary policies to try to achieve the lower rate. These policies might at first succeed because
1. in the long run, as aggregate demand increases, unemployment is reduced.

2. in the short run, as aggregate demand increases, unemployment is reduced.

3. in the short run, this action will decrease aggregate demand and unemployment.

4. in the long run, as aggregate demand decreases, unemployment is reduced
Business
2 answers:
nikitadnepr [17]3 years ago
6 0

Answer:

The answer is 2. in the short run, as aggregate demand increases, unemployment is reduced

Explanation:

As aggregate demand increases, more workers will be hired by firms in order to produce more output to meet the rising demand, and unemployment will decrease.

vredina [299]3 years ago
5 0

Answer:

2. in the short run, as aggregate demand increases, unemployment is reduced.

Explanation:

The government misjudging the natural rate of unemployment to be much lower than it actually is, and thus undertaking expansionary fiscal and monetary policies to try to achieve the lower rate. These policies might at first succeed because in the short run, as aggregate demand increases, unemployment is reduced due to the expansionary policies.

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Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happ
4vir4ik [10]

Answer:

  • Equilibrium wage increase
  • Level of employment increase

Explanation:

A shift rightward in the labor market of a single employer would imply that the employer wants more labor. They will therefore increase the wages that they are paying their labor to entice more labor and the level of employment in the industry will increase as the employer hires more people.

Graphically speaking, when the labor demand curve shifts right, it will intersect with the labor supply curve at a higher equilibrium wage. The quantity of labor will also increase as it goes to a new equilibrium point.

7 0
3 years ago
Why is compounding interest monthly better than yearly ?
dalvyx [7]

Answer:

More interest payments on yearly computing.

Explanation:

It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred

6 0
3 years ago
Carley Company purchases a new delivery truck for $45,000. The sales taxes are $3,000. The logo of the company is painted on the
disa [49]

Answer:

$49,420

Explanation:

5 0
3 years ago
Which of the following is a true statement?a. when making decisions about saving and borrowing, people care about the nominal in
luda_lava [24]

Answer:

The answer is: C) A falling interest rate will lead to a movement along the demand curve for loanable funds

Explanation:

When you think about a loan, the interest rate is what you pay for getting the loan. So we can assume the interest rate is the price of the loan.

If the interest rates decrease, it is equivalent to a price decrease. Whenever the price of a good or service decreases, the quantity demanded for that good or service increases.

7 0
3 years ago
The Dennis Company reported net income of $50,000 on sales of $300,000. The company has average total assets of $500,000 and ave
densk [106]

Answer:

C) 12.5%

Explanation:

The computation of the return on equity is shown below

Return on equity is

= net income ÷ equity

where,

equity is

= Total assets - total liabilities

= $500,000 - $100,000

= $400,000

Now the return on equity is

= $50,000 ÷ $400,000

= 12.50%

Hence, the return on equity is 12.50%

Therefore the corredct option is c.

7 0
3 years ago
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