Adjust the graph to show the effect of a decrease in the aggregate price level.
Which of the statements offers the best explanation for the change demonstrated in the graph?
a. Prices of goods and services decrease on average.
b. The prices of a few goods in the market dropped substantially.
c. Consumers purchase less of one product, like cars, and more of another, like clothing.
d. The law of demand dictates the behavior of the aggregate demand curve.
Answers
Answer:
a. Prices of goods and services decrease on average.
Explanation:
Since the aggregate demand curve shows the relationship between the aggregate price level and real GDP, a reduction in the aggregate price level is represented by a movement along the aggregate demand curve. The aggregate price level is a weighted average of the prices of all of the goods in the economy.
If only the prices of a few goods fall, it is not likely to affect the aggregate price level. The law of demand does not concern the aggregate demand curve but the relationship between the price level and the various components of aggregate demand. If consumers purchase more of one product and less of another, then the overall price level will be unaffected.
Related Questions
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1. A Market economy features:
A People relying on customs to make economic decisions
B The government directly controlling the production and sale of goods
C Private companies opertering without government interference
D The government placing some regulations on free businesses
2 Which statement best summarizes the economic theories of Adam Smith
A Economies that are based on free trade will always be unstable
B Economies work best when government leave businesses alone
C Economic problems mostly result from the struggles between classes
D Economic growth should be carefully guided by the government
3 Government most often regulates often essential services like water treatment by
A Eliminating pure competition markets
B Setting up natural monopolies
C Taking control; over private corporations
D Creating barriers to entry in monopolistic competition
4 What type of businesses organization offers many benefits and its specific to the United States?
A Corporations
B Sole proprietors
C Limited liability
D Partnerships
5 The Purpose of fiscal policy is to
A Conduct foreign diplomacy
B Tax and spend money
C Regulate corporate behavior
D Create and enforce laws
6Monetary influences the economy by adjusting the
A Gross domestic product
B Money supply
C Unemployment rate
D Budget deficit
Answers
Answer:
1.) A.) private companies operating without government interferance.
2.) B.) Economies work best when government leave businesses alone
3.) B.) Setting up natural monopolies
4.) C.) Limited liability
5.) B.) Tax and spend money
6.) B.) Money supply
Explanation:
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Define is peace building
Answers
Answer:
Peacebuilding is an activity that aims to resolve injustice in nonviolent ways and to transform the cultural and structural conditions that generate deadly or destructive conflict.
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What are the advantages of industry ?
Answers
Faster manufacturing.
Less machine and production line downtime.
Fewer quality issues with products.
Explanation:
Growth of industries leads to increase in production of goods and services which are available to people at cheaper rates.It reduces dependence on other countries and improves economy.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It reduces dependence on other countries and improves economy.It results in rising the standard of living.It creates new job opportunities helping in the removal of unemployment.What is one way political parties shape public policy?
Answers
Answer:
"Helping elected officials who belong to the party work together more effectively."
Explanation:
sorry found this, and ur questions been up awhile. sorry
features of capital budget .At least 5 points
Answers
Answer:
Big Investments Irreversible Decision MakingHigh Risk Impacts the structure costAffects Your Future CompetitivenessEastland’s government has a total national debt of $500 million, which is financed as follows: $100 million is held by other government agencies, $200 million is held by Eastland’s citizens, and $200 million is held by foreign citizens. The amount of public debt in Eastland is:
$500 million.
$400 million.
$300 million.
$100 million.
Answers
Complete the sentences with the correct term.
Cost‑push inflation occurs when ____(short-run aggregate supply / aggregate demand)____ decreases until equilibrium output falls below the full employment level.
As a result, the ____(equilibrium output level / price level)_____ increases.
One possible cause of cost‑push inflation is an increase in ____(technology / the costs of inputs)_____.
To combat falling aggregate output, the government may introduce policies to increase ____(aggregate demand / long-run aggregate supply)_____ to the point where it and short‑run aggregate supply intersect ____(aggregate demand /
long-run aggregate supply)_____ at the same point.
These policies cause ____(the price level / equilibrium output)____ to return to its full employment level, and the ____(level of output / price level)_____ increases even further.
Answers
Answer:
Cost-push inflation occurs when short run aggregate supply decreases until equilibrium output falls below the employment level.
As a result, price level increases.
One possible cause of cost-push inflation is an increase in the cost of inputs.
To combat falling aggregate output, the government may introduce policies to increase in aggregate demand to the point where it and short-run aggregate supply intersect long run aggregate supply at the same point.
These policies cause equilibrium output to return to its full employment level, and the price level increases even further.
Explanation:
Cost‑push inflation is caused by a decrease in short‑run aggregate supply (SRAS) that results in an equilibrium below an economy's full employment level of aggregate output. This can be caused by a substantial increase in the cost of inputs, such as oil or wages, giving rise to an increase in the cost of production.
Initially, the economy will reach an equilibrium where the new SRAS curve intersects the aggregate demand curve. At this equilibrium, the aggregate output has decreased and the price level has increased.
Since the economy is now operating below full employment output, the government may get involved by creating policies to increase aggregate demand, so that the equilibrium returns to the full employment level of output. At this new equilibrium, aggregate output returns to the economy's full employment level, but the aggregate price level has increased further.
Real GDP per capita is NOT an adequate measure of
average real GDP per person in the economy.
the well-being of each person in an economy.
a country's average aggregate spending per person.
a country's average aggregate output per person.
Answers
Answer:
the well-being of each person in an economy.
Explanation:
Real GDP per capita is average real GDP per person in the economy. It can be found by dividing real GDP by population. It is a measure of the economy's aggregate output per person which is also a measure of aggregate spending per person.
Richer nations with higher real GDP per capita are typically happier than poorer nations. However, real GDP per capita is a poor measure of the overall well-being of individuals in an economy because real GDP per capita does not measure the many dimensions related to how people live, but rather how much, on average, individuals in a country produce and consume.
Real GDP per capita measures the average level of a country's income, adjusted for inflation. Since, It tracks the average real GDP per person in the economy, option (a) is not valid. Real GDP per capita can also be used as a rough estimate of a country's average aggregate output per person as well as the average spending capacity per person of a country. Therefore, options (c) and (d) are not correct either. The emotional or general well-being of a country's populace is not accounted for in the data used to calculate the Real GDP per capita of a country.
What we expect to see can play a bigger role when we form beliefs than what we actually see. True or false?
Answers
Answer:
true
If u believe in God
u won't Ever wonder how He created the universe
business plan for bakery
Answers
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Investors face various choices regarding what they can invest in, and the choices carry varying amounts of risk. For example, stock prices are much more volatile than bond prices.
What is the typical reason why investors would choose to put their money into an investment with higher risk rather than one with lower risk?
- They want to signal their courage to other investors and scare them away.
- Assuming enough risk in a portfolio qualifies investors for a large government tax credit.
- Riskier investments typically have higher returns.
- Riskier investments are insured by the FDIC.
- They are irrational or are thrill‑seekers.
Answers
Answer:
Riskier investments typically have higher returns.
Explanation:
Although investors choose investments for many different reasons, most investors are seeking to earn a return. Ideally, they would like to earn a high return while exposing themselves to little risk, but what typically happens is that companies offering investments with higher risk know that they have to compensate investors for assuming that risk, or else they will not attract sufficient investment. Thus, higher‑risk investments typically offer a higher return, whereas companies offering lower‑risk investments know that they can offer a lower return and still attact investment. For example, a small company in a competitive, fast‑changing industry will typically offer to pay a higher interest rate for its corporate bonds than a large company in a stable industry.
Also, advertising using risque outfits seem to be more aimed at consumers than investors. Advertising for investors is typically rather boring, featuring graphs and numbers. Of course, one may find that the most interesting models of all are economic models. According to the risk-return tradeoff theory, higher risk is associated with greater probability of higher return and lower risk associated with a greater probability of lower return. The trade-off which the investor faces between risk and return while considering investment decision is called risk return trade-off.
Why fundamental attribution error is important?
Answers
Answer: Understanding the fundamental attribution error is important because research shows that everyday human behavior is heavily influenced by external factors, yet when evaluating others' behavior, you may wrongly perceive their actions as stemming from internal factors
Explanation: Fundamental attribution error breaks collaboration, renders communication ineffective and can even make people leave the organisation. It can cost someone their job.
Though accurate, it is inconvenient and impractical to follow local time in a place .Write clearly to prove the claim.
Answers
Answer:
Because the Earth rotates at an uneven speed, solar days vary slightly in size. This indicates that the pace of true solar time is not constant. Mean solar time is calculated based on the 24 hour length of a mean solar day. It moves at a constant speed. It would be a disadvantage to follow
Suppose that because of globally adverse meteorological conditions, there are serious concerns of climbing prices in an extensive group of commodities. As a result, people now expect an acute increase in the level of input prices. The figure shows aggregate demand (AD), short‑run aggregate supply (SRAS), and long‑run aggregate supply (LRAS). Move one or more of these curves to describe the short‑run effect this would have in the economy and answer the two questions.
*graph goes here*
In the short run, price level
a. decreases.
b. The change is indeterminate.
c. increases.
2. In the short run, real GDP (or aggregate output)
a. increases.
b. The change is indeterminate.
c. decreases.
Answers
Answer:
From the graph above it can be observed that, in the short run price level increases and real GDP decreases.
Explanation:
Input prices are expected to be high and firms' costs are expected to increase. Thus, for any given actual price level, this reduces the quantity of goods and services that firms will supply, which means the short‑run aggregate supply curve shifts to the left (changes in expectations of prices shift the SRAS). This causes the price level to increase and real GDP to decrease.
The increase in expectation of input prices does not change the economy's level of technology or overall productivity. Because of this, an increase in the input price does not change the long‑run aggregate supply. The LRAS curve indicates the amount of goods that the economy could produce if the economy was at full employment.
Likewise, an increase in expectation of input prices does not affect the overall level of demand, so aggregate demand does not shift. Changes in consumption, investment, government spending, and net exports, or C, I, G, and NX, affect AD.
Reading the graph shows that the price level increases and real GDP decreases in the short run. However, this results in higher unemployment, reducing input costs. So in the long run, this causes SRAS to shift back to the right, according to this AD/AS model.
One of the key underpinnings of public choice analysis is the assumption that politicians and bureaucrats
make political decisions based on self‑interest, just as individuals and firms do.
make political decisions based primarily on benefiting future generations.
seek only to maximize long term economic growth through increasing GDP.
act not out of self‑interest but desire to increase the general utility of the public.
Answers
Answer:
a. make political decisions based on self‑interest, just as individuals and firms do.
Explanation:
Public choice analysis is the combination of political science and economics and analyzes political decision making. One key assumption of public choice theory is that politicians are rational, self‑interested, economic agents. Like all other economic agents, they make decisions based on their own self‑interest (specifically, to satisfy constituents and retain their positions). It leads to rise of interest groups, logrolling and rent seeking behavior from the politicians and bureaucrats which leads to inefficiency.
True or False: The Bible provides truth in theological and spiritual areas, but not in scientific and historical areas.
Answers
Answer:
True
Explanation:
This is true because it is not a scholarly source, as more people would think it is a primary source.
Please answer the given four questions related to the market for loanable funds.
1. What effect will an increase in interest rates have on the quantity of loanable funds supplied?
a. Some lenders will offer more whereas others offer less.
b. There will be no change in quantity supplied.
c. Quantity supplied will decrease.
d. Quantity supplied will increase.
2. As interest rate decreases, what happens to the quantity of loanable funds demanded?
a. Some borrowers will demand more funds whereas others will demand less.
b. Quantity demanded will decrease.
c. Quantity demanded will increase.
d. There will be no change in quantity demanded.
3. Which of the terms acts as the "price" in the market for loanable funds?
a. interest rate
b. demand
c. capital
d. supply
4. If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act?
a. The business will proceed anyway, knowing that the return is only an estimate.
b. The business will not take out the loan.
c. The business will demand more funds to cover the shortfall.
d. The business will take out the loan.
Answers
Answer:
1. d. Quantity supplied will increase.
2. c. Quantity demanded will increase.
3. a. interest rate
4. b. The business will not take out the loan.
Explanation:
The interest rate (specifically the real interest rate) is the factor through which balance is achieved between quantity supplied and quantity demanded in the loanable funds market, and thus it acts as the "price" in this market. Producers of loanable funds (lending institutions) and consumers (borrowers) will adjust their quantities supplied and demanded, respectively, to the prevailing real interest rate in the market. At any given rate, an equilibrium quantity will be established.
As with a traditional supply and demand curve, as the interest rate decreases, the quantity of loanable funds demanded increases. At lower interest rates, more individuals will seek out loanable funds. The key consideration for any consumer in the loanable funds market is how likely he or she is to receive a rate of return equal to or greater than the interest rate. As the interest rate drops, the likelihood of earning a rate of return at least as high as the interest rate increases, and more individuals will request funds.
If a business is unable to secure a rate of return at least as high as the interest rate, it will not desire financing because the outcome would be an overall loss of money. When the rate of return is at least equal to the interest rate, a company will break even. If it is greater, they will make money from the venture. No business will take out a loan with an interest rate higher than the projected rate of return because this would likely put it farther into debt than before, with no net benefit. Businesses will only borrow when the rate of return is projected to be higher than the interest rate.
As the interest rate increases, the quantity supplied of loanable funds increases. Lenders have a higher incentive to supply funds because with a higher interest rate, a greater return on their investment is possible. However, this is no guarantee that lenders will, in fact, earn more, because as the interest rate increases, there is a corresponding decrease in the quantity of loanable funds demanded.
Which of the following was a Roman contribution to art? (1 point)
a
marble sculpture
b
oil painting
c
portrait painting
d
mosaics
Answers
Answer:
A: A marble sculpture!!!
Explanation:
I hope this helps you! :)
Answer:
D) mosaics
Explanation:
And this is the right answer.
The first person is wrong.
And I do the pretest right now.
I hope have a nice day :)
Identify each type of retirement account according to whether the individual contributor pays income taxes on the contribution (posttax) or not (pretax) at the time of the contribution.
401(k)
traditional IRA
Roth IRA
Social Security
Answers
Answer:
Posttax
- Roth IRA
Pretax
- 401(k)
- traditional IRA
- Social Security
Explanation:
Contributions to Social Security, traditional IRAs, and 401(k) plans are not taxed at the time of the contribution. Contributions to Roth IRAs, on the other hand, are made with posttax dollars, which means the income contributed is taxed.
Withdrawals from Roth IRAs made after age 59.5 are not subject to taxes. Compounding interest payments and capital gains can generate substantial growth in such an account over time, so the postretirement tax benefits can be considerable. Benefits paid to retirees from the other systems are taxed as income at that point.
The kind of the retirement account for posttax is Roth IRA and for Pretax is 401(k), traditional IRA and Social Security.
What is retirement?Retirement is a stage in life when a person decides to quit the employment permanently. In the United States and most other industrialized nations, the typical retirement age is 65, and many have some form of government retirement or compensation scheme in place to augment retirees' salaries.
Contributions to Social Security, regular IRAs, and 401(k) programs are not taxed when made. Donations to Roth IRAs, in contrast hand, are made after-tax monies, meaning the revenue received is paid.
Withdrawal effects from Roth IRAs made beyond the age of 59.5 are tax-free. Compounding interest charges and capital gains can create tremendous growth in such an investment over time, resulting in significant post retirement tax savings.
Therefore, it can be concluded that at the moment of post retirement, benefits provided to retirees from these other systems are taxable as income.
Learn more about retirement here:
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define and explain trade
Answers
Trade is a basic concept involving both buying and selling of goods and services. Trade helps people to buy item or sell any product.
What is one way that American citizens can defend the United States from national security threats?
A.
participating in jury duty
B.
voting in elections
C.
joining the armed forces
D.
keeping current on issues
Answers
"prevention is better than cure"Justify the statement.in long
Answers
Prevention is better than cure because it saves us from the harm of curing through medicines. Prevention is a safe way to remain away from any problem. We just need to maintain a healthy and disciplined lifestyle all through life. Whereas, our carelessness lead us to cure using medicines or other treatments. Cure cannot cure us completely however prevention keeps us away from danger and maintains normal health.
Mao Zedong wanted to make China ___________.
a: a democracy
b: a communist nation
c: a colony of Great Britain
d: very poor
Answers
If Northland has a debt of $5 million in 2014, and runs a deficit of $0.3 million in 2015, and a surplus of $0.4 million in 2016, what would its debt be at the end of 2016, assuming no additional interest is added to its debt?
$5.3 million
$4.9 million
$5.7 million
$4.3 million
Answers
A $0.3 million deficit in 2015 has increased the debt from $5 to $5.3 million, and a $0.4 million surplus in 2016 has reduced the debt from $5.3 million down to $4.9 million at the end of the year.
the purpose of law of education
Answers
how technology and social media platforms influenced self-disclosure in your relationships
Answers
Individuals can self-disclose on social media by posting personal content in posts or by revealing information on their personal profiles. While posting is a common activity, updating one's profile is not.
. _____________________ waves are used to send signals because they can travel over very long distances and pass through buildings
Answers
Answer:
the answer is electromagnet
Explanation:
Answer:
__________ waves are used to send signals because they can travel over very long distances and pass through buildings.
Explanation:
Radio is your answer.
radio waves are used to send signals because they can travel over very long distances and pass through buildings.
what is the difference between myth and truth?
Answers
Which of these documents is created by each state? ASAP
Constitution
Declaration of Independence
Articles of Confederation
State of the Union
Answers
The documents created by each state is the Constitution as it contains all of the governing principles of the state.
The Constitution: as a guide for governanceA constitution by definition is an aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determines how such entity in discuss is to be governed.
Read more on Constitution;
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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:
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