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marshall27 [118]
2 years ago
11

The intersection of the aggregate demand and aggregate supply curves determines ______. Multiple choice question. the equilibriu

m price level and equilibrium real interest rate the equilibrium real interest rate and equilibrium real GDP the long-run equilibrium price level and real GDP the equilibrium price level and equilibrium real GDP
Business
1 answer:
Andre45 [30]2 years ago
7 0

The intersection of the aggregate demand and aggregate supply curves helps to determine

  • the equilibrium price level
  • the equilibrium real GDP.

The Aggregate supply curve shows the total quantity of goods and services that firms will produces and sells. In other word, it shows the real GDP of an economy.

The aggregate demand curves shows the quantity of goods and services demanded at different price levels.

Therefore, the intersection of the aggregate demand and aggregate supply curves determines equilibrium price level and equilibrium real GDP.

Learn more about this here

<em>brainly.com/question/23611759</em>

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I looked up the definition of criterion and it means a principle or standard which maybe judged or decided. It’s not the ONLY thing that’s required.
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Vika [28.1K]

Answer:

The options are given below:

A. Firm X

B. Firm Y

C. Same variability of operating profits

D. It would depend on tax effect on taxable income

The correct option is B. Firm Y

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<u>Operating Leverage</u> refers to a cost-accounting formula that measures the degree to which a firm can increase operating income by increasing revenue. Operating leverage actually boils down to the analysis of fixed costs and variable costs, and it is highest in companies that have a high fixed operating costs in comparison with variable operating costs. What this means is that this kind of company makes use of more fixed assets. On the other hand, operating leverage is lowest in companies that have a low fixed operating costs when compared with variable operating costs.

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Therefore, from the scenario given above, we can conclude that firm Y has a higher operating leverage than firm X, because firm X has lower fixed costs than firm Y, and a higher variable cost than firm Y as well. Hence, firm Y has the potential to make more operating profits from its business activities.

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