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mash [69]
3 years ago
5

Imagine that in 2019 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some ti

me. Refer to Scenario 33-2. In the short run what happens to the price level and real GDP
Business
1 answer:
V125BC [204]3 years ago
6 0

In the short-run, the effect on the price level and the real GDP is <em>a. Both the </em><em>price level </em><em>and </em><em>real GDP </em><em>rise.</em>

Since the economy is in long-run equilibrium in 2019, and the stock prices unexpectedly rise and stay high for a long time, it means that the price level does not:

  • Rise while the real GDP falls
  • Fall while the real GDP rises
  • Fall with the real GDP.

<u>Question Options</u>:

a. both the price level and real GDP rise.

b. the price level rises and real GDP falls.

c. the price level falls and real GDP rises.

d. both the price level and real GDP fall.

Thus, in the short-term of this economy both the price level and real GDP rise.

Learn more: brainly.com/question/13029724

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harina [27]

Answer:

B. As a risk-averse investor

Explanation:

B. As a risk-averse investor is a correct option . Risk-averse investors can invest in higher risk opportunity only if it offers higher expected return .

4 0
4 years ago
The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:
Alina [70]

Answer:

1. WINFREY TOWING SERVICE

Statement of Comprehensive Income

                                           $

Service revenue               10,800

Rent expense                    (550)

Salaries expense              (1,900)

Dividends paid                  <u>(4,000)</u>

Net income                        <u> 4,350</u>

Statement of Retained Earnings

                                             $

Retained earnings b/f      3,900

Add: Net income               4,350

Retained earnings c/f       8,250

2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.

Explanation:

In this question, we need to obtain the net income of the company, which  is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.

7 0
4 years ago
For many in the baby-boom generation, the kennedy assassination represents a ________, an exceptionally clear recollection of an
earnstyle [38]
For many in the baby boom generation, ......................................... represents a FLASHBULB MEMORY, an .......................... event.
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4 0
3 years ago
Westwick Inc. is an advertising agency. Its employees are allowed to take decisions and work in ways that will help maximize the
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Answer:

<em>C) Organizational plurality </em>

Explanation:

Organizational plurality is a working environment in which all representatives are encouraged to collaborate in a way that promotes the gains for the company, clients and themselves.

As with the advertising agency, the employees are given chances to follow their decisions and maximize their experience.

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3 years ago
In a balanced balance sheet, if liabilities are $2,000 and owner’s equity is $3,300, what must assets be ____?
TEA [102]

Answer:

5300

Explanation:

assets=equitys +liabilities

3 0
2 years ago
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