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Varvara68 [4.7K]
3 years ago
5

When a negative supply shock hits an economy, Choose one: A. unemployment decreases and this becomes the new long-run natural ra

te of unemployment. B. unemployment decreases temporarily, but returns to the natural rate of unemployment in the long run. C. unemployment increases and this becomes the new long-run natural rate of unemployment. D. unemployment increases temporarily but returns to the natural rate of unemployment in the long run.
Business
1 answer:
ivolga24 [154]3 years ago
5 0

Shocks are unforeseen changes that cause a shift in the aggregate demand and short-run aggregate supply curve. When a negative supply shock hits an economy;

  • D. Unemployment increases temporarily but returns to the natural rate of unemployment in the long run.

When negative supply occurs, it becomes more expensive for producers to make goods perhaps due to some laws that were introduced by the government.

The effect of this on the economy could be temporary or permanent. Some economists have the notion that this shock can correct itself later especially if it is temporary.

Therefore, sentence D is an example of what can happen to an economy in the event of a negative supply shock.

Learn more here:

brainly.com/question/4277384

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Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

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City of New York

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Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly i
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Answer:

$245,000.00

Explanation:

The amount of sales revenue to be made to achieve target profit is computed as follows:

<em>Sales revenue to achieve target income</em>

<em>= Total fixed cost for the period + target profit/ contribution margin</em>

Contribution margin = (Sales - variable cost) / sales   ×  100

The figure has been given as 40% in the question

Sales revenue to achieve target profit = (83,000 + 15,000)/0.4

$245,000.00

Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?

Sales revenue to achieve target profit = $245,000.00

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Explanation:

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Checks have several vital pieces of information, including

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