The accompanying graph illustrates an economy in long-run equilibrium which is denoted by point ELR.
Suppose a new technology is discovered which increases productivity. In the graph, demonstrate how the economy moves to its new long-run equilibrium by shifting the appropriate curves and placing point ELR at the new long-run equilibrium.
In the long run, the aggregate price level ______________ and real GDP (aggregate output) ______________.
WORD BANK
increases
decreases
does not change
Answers
Answer:
*see image*
Explanation:
When there is a change in the potential for an economy to produce goods, this will change long-run aggregate supply (LRAS). In this case, there is an increase in productivity. This increase in productivity leads to an increase in LRAS. The LRAS curve shifts out. Firms will respond either with new entry or increasing each firm's short run supply. As a result, the short run aggregate supply (SRAS) curve increases until it crosses LRAS at the same point as aggregate demand (AD) crosses LRAS.
Because there is an improvement in technology that has raised factor productivity, nation can produce more with same resources so LRAS and SRAS shift to the right.
In the long run, the aggregate price level decreases, and real GDP increases.
Related Questions
How does density determine what is found in each layer? (inside the earth layers)
Answers
Density layers the atmosphere and the interior of the Earth. Denser materials are at the heart of objects because gravity pulls them more forcefully. The Earth's core is denser than its crust at its center. The atmosphere's lower layer is denser than the upper layer.
The risk response strategies such as mitigation and exploitation apply to both threats and opportunities.
a) true
b) false
Answers
Answer:
true.
Explanation:
The statment above is true.
Select the term that matches each definition.
a. when the government receives more in taxes than it spends in a given time period
b. when government spending and taxes are equal
c. when the federal government spends more than it collects in taxes in a given time period
d. the total accumulated amount that the government has borrowed and not yet paid back over time
WORD BANK
budget surplus
government debt
balanced budget
budget deficit
Answers
Answer:
a. Surplus budget
b. Balanced budget
c. Budget deficit
d. Government Debt
Explanation:
The terms budget surplus, budget deficit, and balanced budget all characterize the difference between the amount that the government spends and collects over some time period.
When the government collects more in tax revenue than it spends, a budget surplus occurs. Taylor notes that surpluses occurred during President Clinton's second term in office but that they went away when President Bush took office.
When the government spends more than it collects in tax revenue, a budget deficit occurs.
When the government spends the same amount that it collects in tax revenue, a balanced budget occurs.
Government debt is the accumulation of deficits and surpluses across time. Government debt is a measure of what the government owes.
The Following correctly matches each definition.
budget surplus: when the government receives more in taxes than it spends in a given time period.balanced budget: when government spending and taxes are equalbudget deficit: when the federal government spends more than it collects in taxes in a given time period.government debt: the total accumulated amount that the government has borrowed and not yet paid back over time.What is the meaning of a Surplus Budget?When income exceeds expenditures, there is a budget surplus. When a government runs a surplus, it has extra money that it can reinvest or use to pay off debts. The inverse of a surplus is a deficit. When government spending exceeds revenue, the government must borrow money to fund spending.
Thus, the mentioned above are correctly matched with its description.
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What is the main difference between a "root word" and a "root" word?
Answers
Answer:
Base Word is a morpheme from which words have been created by the addition of prefixes or suffixes. Root word is the part of the base word that comes from another language.
Individual Meaning
Base word can stand alone. Root word cannot often stand alone.
Explanation:
cuz it is ..... ur welcome
People who might need to retrieve part or all of their investment relatively soon, such as the elderly, are often advised to invest a higher percentage of their money in bonds, and thus a lower percentage in stocks, than people who can leave the investment untouched for decades. We know, however, that bonds typically have a lower rate of return than stocks.
Why would people be advised to invest in assets that give lower average rates of return?
a. This is bad advice. People should always invest in whichever assets have the highest average rate of return.
b. Although stocks have a higher rate of return in the long run, they are much more volatile, or riskier, in the short run. Therefore, there is a higher probability that the value of the stocks will be less than the original value of the investment for people who might need to withdraw the investment in the short run.
c. Since bondholders get paid before stockholders in the event of bankruptcy of a firm, the average "real" rate of return on stocks and bonds will be the same, with bonds being less risky.
d. Although stocks have higher average rates of return in the long run, bonds have higher average rates of return in the short run. Therefore, bonds are likely to be more profitable for people who might need to get their investment back in the short run.
Answers
Answer:
b. Although stocks have a higher rate of return in the long run, they are much more volatile, or riskier, in the short run. Therefore, there is a higher probability that the value of the stocks will be less than the original value of the investment for people who might need to withdraw the investment in the short run.
Explanation:
The relationship between risk and return plays an important role here. Although stocks have higher returns on average, they are much riskier. One way in which this higher risk can manifest itself is through a portfolio value that fluctuates a lot. So, it is more likely that $1,000 invested in a diversified stock portfolio will be worth only $800 at some point than $1,000 invested in a diversified bond portfolio. If the investor is going to need that $1,000 back at some point soon, then it might be wiser to invest in the lower‑average‑return bond portfolio.
Stocks surely have higher rate of return in the long run but are highly volatile in the short run. If an investor, especially older person, who might need his money in the short run may find that his current value of stock is less than the value of investment. Thus the investor may incur a net loss even if the stock may have high rate of retun in the long run. Hence it is advisable to invest more in bonds if money is to be withdrawn in the short run.
Consider the GDP deflator and real GDP, given in thousands of dollars, for the country of Economica.
The base year, or base period, is year 3. For the given years, calculate the nominal GDP. Round your answers to the nearest dollar.
What is the nominal GDP for year 1?
What is the nominal GDP for year 2?
What is the nominal GDP for year 3?
Answers
Answer:
Year 1: $32,316
Year 2: $49,924
Year 3: $10,998
Explanation:
1. Nominal GDP in year 1 = (gdp deflator * real GDP)/100
= (105 * $30,777)/100
= 1.05 * $30,777
= $32,315.85 ~ $32,316
2. Nominal GDP in year 2 = (gdp deflator * real GDP)/100
= (123 * $40,589)/100
= 1.23 * $40,589
= $49,924.47 ~ $49,924
3.Nominal GDP in year 3 = (gdp deflator * real GDP)/100
= (100 * $10,998)/100
= $10,998
As Joe and his family are with their therapist, they start talking about with Sarah, their youngest daughter who has been causing a lot of tension in the family. Their family therapist will most likely __________.
Answers
The thing which the family therapist would most likely do is to a. encourage growth and autonomy in each family member
What is Therapy?This refers to the professional psychological intervention which is done to help people with their psychological problems.
Hence, we can see that based on the given family problem of Sars, who is their youngest daughter giving them tension and problems, the family therapist while counseling them would most likely encourage growth and autonomy in each family member
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POEM COMPOSITION: Population - a group of organisms of the same species that live in a certain area. Carrying capacity can be defined as species’ average population size in a particular habitat. The species population size is limited by environmental factors like adequate food, shelter, water, and mates. If these needs are not met, the population will decrease until the resource rebounds.
Construct or compose a poem about the relationship between population and carrying capacity.
• Written in a short bond paper with margin on both sides.
• Must be presentable
• Submitted on time
• Your grades will be based using the rubric provided.
Answers
wealth,energy consumption,popluation size, and growth are
Answers
Answer:
That is, for a 20% increase in population size, energy consumption increased by 43.6%; conversely, for a 20% decrease in population size, demand for energy decreased by 44.6%.
Explanation:
Which of the following best describes
"equity?"
A. investing in a company
B. paying money back to a firm
C. printing more money for business use
D. buying products from a firm
Answers
Answer:
The sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years.
The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or decrease) in real GDP than the initial change.
In which type of discretionary fiscal policy does the multiplier play a role?
a. government spending changes only
b. both government spending changes and tax changes
c. neither government spending changes nor tax changes
d. tax changes only
Assume a marginal propensity to consume (MPC) of 0.5.
Which discretionary fiscal policy would have a more pronounced impact on the economy?
a. A 800 billion dollar increase in government spending, or a 800 billion dollar tax cut, would both have an equal impact on the economy.
b. A 800 billion dollar tax cut would have a more pronounced impact on the economy.
c. A 800 billion dollar increase in government spending would have a more pronounced impact on the economy.
Answers
Answer:
- both government spending changes and tax changes
- A 800 billion dollar increase in government spending would have a more pronounced impact on the economy
Explanation:
The multiplier plays a role in both government spending changes and tax changes. The multiplier depends on the MPC.
Multiplier = 1 / (1 − MPC)
If the government increases spending, the money spent will travel through the economy multiple times: once when the government spends the money and again as inviduals and businesses spend the money over and over. The amount that is spent in each round depends on the MPC. The same multiplier effect applies, for example, if the government cuts taxes.
The increase in government spending will have a larger impact on the economy. With government spending, the amount of increased spending is multiplied by the multiplier to figure out how much total economic impact the policy will have.
With a tax cut, some of the initial tax cut will be saved right away and therefore taken out of the spending cycle of the economy. Given the MPC of 0.5 in this problem, half of the tax cut will saved, leaving only the other half to travel through the economy according to the multiplier. Therefore, a tax cut has a less pronounced impact on an economy than government spending.
What rights do states not have under the Constitution? HISTORY
Answers
Answer:
Article I, Section 10 of the Constitution of the United States puts limits on the powers of the states. States cannot form alliances with foreign governments, declare war, coin money, or impose duties on imports or exports.
Explanation:
Making the assumption of no compounding interest, suppose you purchase a perpetuity bond from Vandalay Industries for $4,000 with an annual coupon rate of 3%. Specify all answers to the nearest dollar and assume a discount rate equal to that of the current interest rate.
1. What is the yearly return on your $4,000 investment?
yearly return: $______________
2. Changes in the economy push interest rates up from 3% to 5%. For how much can you sell your bond following this change in market interest rates?
price of bond: $______________
3. Suppose that interest rates instead change from 3% to 1%. For what price will you be able to sell your bond following this change in market interest rates?
price of bond: $______________
Answers
Answer:
yearly return: $120
price of bond: $2,400
price of bond: $12,000
Explanation:
To solve for the yearly return on the bond, simply multiply the value of the bond by the annual coupon rate. This yields
$4000 × 0.03 = $120
To calculate the price of a perpetuity bond following changes in the market interest rate, use the formula
price of bond = interest payment / yield
So if the yield on bonds is now 5% , the price of your existing bond from Vandalay Industries, which pays only 3% , falls to $2{,}400 since
$120 / 0.05 = $2400
However, if market interest rates fall to 1% , then the 3% yield on your current bond becomes very attractive to investors.
$120 / 0.01 = $12000
As such, investors would pay $12,000 for your bond when interest rates fall to 1% .
Although perpetuities may seem to be an unusual form of investment, note that the pattern of the bond price varying inversely with interest rates is common to other types of bonds.
In what way(s) does GDP per capita not provide an accurate representation of living standards? SELECT ALL THAT APPLY.
- GDP per capita does not measure production that occurs outside of the market economy.
- GDP per capita does not account for how people distribute their time between work and leisure.
- GDP per capita does not account for changes in environmental quality.
- GDP per capita does not account for all final goods and services sold in markets.
Answers
Answer:
GDP per capita does not measure production that occurs outside of the market economy.
GDP per capita does not account for how people distribute their time between work and leisure.
GDP per capita does not account for changes in environmental quality.
✗ GDP per capita does not account for all final goods and services sold in markets.
Explanation:
Although GDP per capita is useful as a rough indicator of living standards in a country, it ignores certain factors that can be quite important. In particular, it ignores anything that lacks a market price. Notable ommissions thus include leisure time, environmental quality, and nonmarket economic activities.
GDP per capita does account for all final goods and services sold in markets. So that option is not correct. GDP is just a growth indicator of an economy. It doesn’t take any major factors like literacy, distribution of income, standard of living etc. into account.
if you are in a public bathroom and someone knocks on your door, what would be the best response?
A. stay silent
B. "im buzy"
C. "come in"
D. open the door
Answers
Answer:
B. I'm busyExplanation:
C and D don't make sense.what was the utilities of the topography of Nepal? write in four points.
Answers
Answer:
The Himalayan region can be promoted for tourism. Crops like wheat, millet, and corn can be grown in the hill region which is mostly covered with dense forests and rice, and sugar cane can be grown in the Terai region. This way Nepal can utilize its diversity of areas and be economically stable country.
Explanation:
PLS HELP FAST!!!
What do you think about suppressing certain evidence because it has been obtained illegally? How does it relate to the Constitutional right to due process? Explain your point of view fully, giving examples to back yourself up.
Answers
Suppressing certain evidence because it has been obtained illegally isn't ideal as the "exclusionary rule" can be practised.
What is Evidence?This is defined as any information used in the court of law to prove something. The Fourth Amendment to the U.S. Constitution prohibits law enforcement officers from conducting unreasonable searches and seizures.
They must have a valid warrant or probable cause which when violated the "exclusionary rule" comes into play.
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How did Aksum rise to power?
'
Answers
Answer:
under the leadership of King Ezana
Explanation:
Aksum reached its peak under the leadership of King Ezana who ruled from around 325 CE to 360 CE. During this time, Aksum expanded its territory and became a major trade center. It was under King Ezana that Aksum conquered the Kingdom of Kush, destroying the city of Meroe. King Ezana also converted to Christianity.
In 3 John, John commends the elect lady and her children for their faithfulness in lovingly helping fellow Christians and strangers. true false
Answers
The answer to the question is false because 3 John is not about the elect lady and her children.
What is the 3 book of John about?This chapter of the book is mostly about the hospitality that has been shown to the people of Christian faith.
The book mostly highlights the importance of hospitality especially to the people that were spreading the gospel.
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Which of the sociological perspectives would you use to understand crime and the criminal justice system in America?
Answers
While there are many different sociological theories about crime, there are four primary perspectives about deviance: Structural Functionalism, Social Strain Typology, Conflict Theory, and Labeling Theory. Starting with these theories can provide the context and perspective necessary to better appreciate other sociological theories of crime.
Sure hope this helps you! ;)There are four sociological perspectives use to understand crime and criminal justice system in America:
- Structural Functionalism
- Social Strain Typology
- Conflict Theory
- Labeling Theory
What is crime in Sociology?Crime under sociology is defined as the study of social deviance and violation of established norms.
Most common types of crime under Sociology is:
- Violent crime
- Property crime
- White-collar crime
- Organized crime
- Consensual or victimless crime
Four primary sociological deviance are:
- Structural Functionalism:
Structural Functionalism argues deviant behavior plays an important part in society bringing together different parts of the population within a society. Deviance helps to demarcate limitations for acceptable and unacceptable behavior and serves to affirm our cultural values and norms.
While deviant behavior can throw off social balance, society may adjust social norms in the process of restoring that balance.
In other words, deviant behavior can then contribute to social stability in the long term because it challenges norms while promoting social cohesion
- Social Strain Typology:
Social Strain typology proposes that deviant behavior can be classified by typology based on a person’s motivations or adherence to cultural objectives and beliefs about how they can obtain those goals.
The main “types” of social deviance being: ritualism, innovation, rebellion, ritualism, retreatism, and conformity.
This theory also suggests that people can turn towards deviant behavior while pursuing accepted social values/goals.
-Conflict Theory:
Conflict Theory views deviant behavior as a consequence of material inequality between various socio-political groups. Those groups might be drawn along the lines of gender, religion, race, class, and so on.
Each sociopolitical group has a tendency to perceive its own interests in completion with others.
Groups that find themselves in an unequal social position in society will be inclined to deviant behavior to change those circumstances, including the structures which helped create them.
-Labeling Theory:
Labeling Theory argues that deviant behavior is often a consequence of having a deviant-like label applied to a person.
This theory tends to focus on how people become deviant as a result of others forcing that identity upon them.
It allows us to develop a better understanding of how a person’s previous behaviors can be reinterpreted in relation to the symbolic labeling they encountered over the course of their lives.
What is Criminal Justice System of U.S.A?A criminal justice system is an organization that exists to enforce a legal code. There are three branches of the U.S. criminal justice system: the police, the courts, and the corrections system.
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To which region did people migrate to find gold in 1849?
Answers
Hope this helps.
The full employment level of real GDP is $6 billion for the recently formed island nation of Turtleopolis. Use the line segment to show long‑run aggregate supply on the graph.
Answers
Answer:
*see image*
Explanation:
The long‑run aggregate supply curve is vertical at the point of full employment GDP. In this case, it is $6 billion. A change in the price level will not affect the production capabilities of an economy in the long run. LRAS is at the same point of real GDP for every price level. The LRAS curve will shift when the economy experiences growth, but, even then, it will maintain its vertical shape.
who was the most important person in 1860
Answers
Answer:
M. Visvesvaraya, Lizzie Borden, Anton Chekhov, Jane Addams, Gustav Mahler and many more.
Explanation:
A preschoolers friendships to be based on proximity. True or false?
Answers
Answer:
True
Explanation:
Since children often cannot explore on their own the location of their guardians choosing is most likely where their social life will remain.
PLS ANSWER ALL, THANK YOU!
In the blank at the left, write the letter of the choice that best completes the statement or answers
the question.
7 Points
___ 1. To avoid the concentration of power, the states divided government functions between the
_?_.
A. people and the governor
B. people and legislature
C. governor and the president
D. governor and the legislature
Continue on next page.
___ 2. Under most state constitutions, which government branch was most powerful?
A. the judicial branch
B. the legislative branch
C. the executive branch
D. none
___ 3. Which of these functions could the national government not perform under the Articles of
Confederation?
A. conduct foreign affairs
B. impose taxes
C. maintain armed forces
D. issue currency
___ 4. How many states had to approve the Articles of Confederation?
A. 13
B. 9
C. 11
D. 10
___ 5. What area did the ordinance passed in 1787 create?
A. Mississippi River valley
B. Appalachia
C. Northwest Territory
D. Ohio River valley
___ 6. When could a territory apply for statehood?
A. when it abolished slavery
B. when it elected a governor
C. when it wrote a constitution
D. when its population reached 60,000
___ 7. How did Robert Morris propose to pay off the national debt left over from fighting the
Revolutionary War?
A. 5 percent state sales tax
B. 5 percent import tax
C. 5 percent national income tax
D. 10 percent inflation tax
Answers
1.D.
2.C.
3.C.
4.D.
5.D.
6.B.
7.C.
Explanation:
please mark me as the brainiest
• Pick one of the specific sociological topics outlined in the following chapters of your book: Demography, Aging, Economy, Family, Religion,
Health, and Medicine, or Collective Behavior. Based on what the chapter has to say about the specific topic you choose, discuss what
research methods you think would be most applicable to studying it.
Answers
The sociological topic that has been chosen here is the economy and the research method that is used to study it would be experimental research.
What is the experimental research in economics?
The experimental method in economics helps to ensure the use of scientific experiments when testing for the choices that people make in different economic situations.
The method helps to test the new policies that the government may propose before the policies would be implemented.
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Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Sunshine's Doughnuts, produces 180 dozen doughnuts a day using two mixers and two fryers. Both shops use the exact same technology to make doughnuts and have the same number of workers and the same size building. Donny and Sunshine both increase their capital equipment by one mixer and one fryer.
1. Which shop will benefit the most from its expansion?
a. The shops will benefit equally because they are using the same quantity of equipment.
b. Donny, because his workers currently have less available capital to work with.
c. The local weight‑loss clinic, because the number of doughnuts consumed will increase.
d. Sunshine, because her operation was producing more doughnuts to start with.
2. How much should Donny realistically expect his production to increase with the new equipment?
a. at least 100 dozen
b. about 50 dozen
c. about 80 dozen
3. How much should Sunshine realistically expect her production to increase with the new equipment?
a. at least 100 dozen
b. at least 80 dozen
c. about 50 dozen
Answers
Answer:
b. Donny, because his workers currently have less available capital to work with.
c. about 80 dozen
c. about 50 dozen
Explanation:
Because the two shops are identical in every respect except the amount of capital equipment they use, you can see that diminishing returns is taking place by comparing the two firms.
Donny produces 100 dozen doughnuts using one mixer and one fryer. Sunshine has twice as much equipment but produces less than twice as many doughnuts, 180 dozen. The second set of equipment does not increase her production as much as the first set did.
So, if Sunshine adds a third set of equipment (without adding more workers to use it), that third set will increase her output even less than the second set did. So, Donny can expect the second set of equipment to increase his output by about 80 dozen, while Sunshine should expect her third set of equipment to increase her output by less than 80.
Who started the fight between Hamilton and jefferson
Answers
After graduating from college in 2010, Art Major's starting salary is $50757.00. Suppose Art Major has a cost of living adjustment (COLA) clause, or an escalator clause, in his labor contract so that he will be able to maintain this same level of purchasing power in real terms in 2011 and 2012. Using the information in the table, how much will Art Major earn in 2011 and 2012 if his salary keeps up with inflation? Round your answers to the nearest dollar.
What is Art Major's salary in 2011? $____________
What is Art Major's salary in 2012? $____________
Answers
Answer:
Salary in 2011: $52,318
Salary in 2012: $55,445
Explanation:
*see image*
Americans have a disproportionate concept of crime rates. Their inflated fear of victimization constitutes a
Answers
The disproportionate concept of crimes that Americans have has inflated fear of victimization which is known as fight or flight
What is the fight or flight phrase about?This is a term that is used to refer to the psychological response that people have to certain situations.
When confronted by threatening situations, the first response of some people may be to run. For others it may be to confront the issues head on.
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