More Just-in-Time Reviews have been added in the margins to provide students with D(q) is the price (dollars per unit) at which q units.
How is the marginal cost derivative calculated?The total cost function's derivative, C, is the marginal cost function (x). Derive the total cost function to determine C' and the marginal cost (x). You can also write this as dC/dx, which makes it easier to understand the units of cost per item.
How are AFC and ATC determined?The fixed cost per unit of output is known as the AFC, and the variable cost per unit of output is known as the AVC. We previously said that Bob's Bakery can create 100 loaves with FC = 40, VC = 500, and TC = 540. ATC = TC/Q = 540/100 = 5.4 as a result. Additionally, AVC = 500/100 = 5 and AFC = 40/100 = 0.4.
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van frank telecommunications has a patent on a cellular transmission process. the company has amortized the $19.80 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. the decision was made at the end of 2021 (before adjusting and closing entries).
The total patent count in the above case would be 4.25
Calculation after the Change:
Original Cost = 15.3Annual Amortization (Old) = 15.3/9 = 1.7 millionAmortization till Date (2009 - 2013) = 1.7*4 = 6.8 millionUnamortized Value = 15.3 - 6.8 = 8.5 millionRemaining Life = 6 - 4 = 2 YearsNew Amortization = Unamortized Value/Remaining Life = 8.5/2 = 4.25 millionAmortization Expense Dr. 4.25Patent Cr. 4.25A patent number for a utility patent will often be in the millions (e.g. 6,434,333). A design patent often has a patent number that begins with the letter "D" or the letters "Des," and it will be in the hundreds of thousands.Patents might be of the Utility, Design, or Plant varieties. Anyone who creates a new, useful process, machine, manufactured good, or composition of matter, or any new, beneficial improvement thereof, may be eligible to receive a utility patent.To know more about patent here
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Dividends in arrears on cumulative preferred stock must be paid before common stockholders can receive a dividend. should be recorded as a current liability until they are paid. enable the preferred stockholders to share equally in corporate earnings with the common stockholders. are shown in stockholders’ equity of the balance sheet.
Dividends in arrears should be recorded as a current liability until they are paid.
What is Dividends in arrears ?Dividends in arrears are those that must be paid to preferred stockholders before any dividends may be distributed to common stockholders. Dividends in arrears typically indicate that a firm has not been able to raise enough money to pay the dividends it owes preferred shareholders.
On the balance sheet, arrear dividends are shown as a current liablility. Hence, Dividends in arrears should be recorded as a current liability until they are paid.
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A salesperson, when doing a comparative market analysis (CMA), would be LEAST concerned with which of the following sets of information? 1 Number of properties of similar size and style for sale in the area 2 The original price the owner paid for the property 3 Sale prices of similar properties in the area 4 List prices of properties in the area
The initial cost that the owner of the property paid for it. Real estate markets are always active in the present. The original price paid may therefore be interesting, but it is significantly less significant than the other factors.
Which of the following statements regarding a CMA is true?An appraisal and a CMA are equivalent. It could be useful in assisting a seller in setting their asking price.
What principle of assessment serves as the foundation for applying a CMA to calculate value?The CMA is the highest price a property would get if it were freely listed on the open market with a willing seller and a willing buyer.
Which of the following would be most interested in and concerned about mortgage recording?To give notice of its lien against the property, the mortgagee (lender) needs to ensure that the mortgage is registered.
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In order for online retailers to convert website visitors to buyers they must _____.
A. design appropriate landing pages
B. offer deep discounts
C. offer free merchandise
D. advertise with videos
E. use pop-ups to get their attentiona
In order for online retailers to convert website visitors to buyers they must use pop-ups to get their attentional.
A store is someone or commercial enterprise which you buy items from. Retailers usually do not manufacture their very own items. They buy items from a producer or a wholesaler and promote those items to purchasers in small quantities.
The SnowDogg MDII is a extremely good plow for residential work. It is a weight-optimized model of Buyers Products' large plows just like the HDII and the EXII, which certainly makes it the pleasant snowplow for a 1/2 of ton truck. Yes, snowplows can and do harm driveways. However, many elements have an effect on this scenario, and it is also viable to plow snow on a driveway for years without damages. The trick is to appoint the pleasant strategies with revel in through your side.
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The elasticities of the demand curves for firms in monopolistically competitive (MC) industries will become more like that of firms in pure competition as?
The number of rivals increases and product differentiation grows weaker
The elasticities of the demand curves for firms in monopolistically competitive (MC) industries will become more like that of firms in pure competition as the number of rivals increases and product differentiation grows weaker. [TRUE]
Definition of Monopolistic MarketIn a monopolistic market, there are many sellers offering homogeneous or similar merchandise. But the products sold are distinguished by their quality, shape, and size, and all existing sellers must compete optimally. Products sold in this market have different qualities, prices and sizes even in one type of product. Fixed price determination will usually be determined directly by the seller. So it does not use market mechanisms.
A monopolistic market is basically a market that exists between two extreme types of markets, namely perfect competition markets and monopoly markets. Therefore, this type of market contains elements or characteristics derived from monopoly competition markets and perfect competition markets. In other words, a monopolistic competition market can be interpreted as a market which has many sellers or producers who produce a variety of products.
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capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the: group of answer choices the unit resource requirements and then adding in the setup time. the setup time and then subtracting the unit resource requirements. the setup time and then adding in the unit resource requirements. the unit resource requirements and then subtracting the setup time.
The capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the unit resource requirements and then adding in the setup time
What is a resource requirements plan?The most crucial components needed to make your business model successful are referred to as resources. the process of transforming the production plan or master production schedule into the effect on important resources, such as man-hours, machine-hours, storage, standard cost dollars, shipping dollars, and inventory levels.
Resource requirements include the time and resources needed to produce a product are estimated using information from a projection of future sales. Resource management done right may lower expenses, increase efficiency, and increase productivity for your company. By reprioritizing projects or resources, you may usually more quickly mitigate risk by seeing possible resource conflicts early on.
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a sales rep worked 25 days last month, made 150 calls, and wrote 60 orders for a total sales volume of $200,000. which of the following is nearest to his batting averag
A sales rep worked 25 days last month, made 150 calls, and wrote 60 orders for a sales volume of $200,000. 0.400 is nearest to his batting average.
A statistical method used to assess an investment manager's capacity to match or outperform an index is known as "batting average." The better, the greater the batting average. The maximum average that might be achieved is 100%, while 0% is the minimum.
The phrase originates from baseball, where batting average is one of many statistics used to rank players. Baseball is where the phrase "batting average" first appeared. The percentage of hits a player has while at bat is indicated by their batting average.
The term "batting average" in finance refers to a statistical evaluation of an investment manager's performance, whether they outperform or underperform the benchmark.
Here, batting average = orders / calls
= 60/150
= 0.400
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barnes company applies overhead on the basis of machine hours. given the following data, compute overhead applied and the under- or overapplication of overhead for the period: estimated annual overhead cost $1,500,000 actual annual overhead cost $1,470,000 estimated machine hours 300,000 actual machine hours 290,000 group of answer choices $1,450,000 applied and $20,000 overapplied $1,500,000 applied and $20,000 overapplied $1,450,000 applied and $20,000 underapplied $1,470,000 applied and neither under- nor overapplied
The correct answer is $1,450,000 applied and $20,000 overapplied.
To calculate the overhead applied, we need to calculate the estimated overhead per machine hour. This is done by dividing the estimated annual overhead cost ($1,500,000) by the estimated machine hours (300,000). This gives us an overhead rate of $5 per machine hour.
Multiplying this overhead rate by the actual machine hours used (290,000) gives us the overhead applied for the period, which is $1,450,000.
To calculate the over/under application, we need to compare the actual overhead cost ($1,470,000) to the overhead applied ($1,450,000). Since the actual overhead cost is greater than the applied overhead, there is an overapplication of $20,000.
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embassy club condominium, located on the west coast of florida, is undertaking a summer renovation of its main building. the project is scheduled to begin may 1, and a september 1 (17-week) completion date is desired. the condominium manager identified the following renovation activities and their estimated times. activity immediate predecessor time a - 3 b - 1 c - 2 d a, b, c 4 e c, d 5 f a 3 g d, f 6 h e 4 Draw a project network. What are the critical activities? What activity has the most slack time? Will the project be completed by September 1?
Technically, the whole Florida West Coast, sometimes referred to as the Gulf Coast, is a 660-mile stretch of road that extends from Pensacola all the way down to Key West and Everglades City.
West coast Florida was a territory on the northern Gulf of Mexico coast that had several changes in boundaries and sovereignty during its history. West Florida, as its name implies, was created from the western portion of the old Spanish Florida (East Florida comprised the eastern portion, with the Apalachicola River being the border), as well as territory seized from French Louisiana; Pensacola served as the state's capital. About two-thirds of what is now the Florida Panhandle was part of the colony, along with portions of what are now the states of Louisiana, Mississippi, and Alabama in the United States.
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a best efforts offering is one in which: multiple choice the investment banker acts only as a distribution agent. the issue can only be privately placed. the bid-ask spread is exceptionally high, but the investment banker does his best to sell the issue anyway. the underwriter bears the risk of an unsuccessful offering. the investment banker acts as a principal for the issuer.
which of the following statements about the federal gift tax is false? multiple choice the donor's basis in the gifted property carries over to become the donee's basis. the tax is imposed on the donor. the tax is based on the fair market value of the gifted property. an individual can give away $10 million (adjusted annually for inflation) every year without being subject to tax.
The statement " an individual can give away $10 million (adjusted annually for inflation) every year without being subject to tax" is false.
Tax refers to an amount of money that a government requires people to pay according to their income, the value of their property, etc., and that is used to pay for the things done by the government.
Here, the statement says that an individual can give away $10 million (adjusted annually for inflation) every year without being subject to tax.
The statement comes False because donors make gifts triggering a taxable gift for the year, tax will be due for that year.
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if expected inflation increases, which of the following shifts right? group of answer choices both the short-run and the long-run phillips curves neither the long-run nor the short-run phillips curve the short-run but not the long-run phillips curve the long-run but not the short-run phillips curve
If expected inflation increases, the short-run but not the long-run Phillips curve shifts right.
Changes in the expected inflation rate have no effect on the long-run Phillips curve. However, an increase in expected inflation shifts the short-run Phillips curve to the right, while a decrease in expected inflation shifts the short-run Phillips curve to the left.
Because it takes workers to produce the supply of goods, inflation and unemployment are closely related to aggregate supply, and wages are one of the largest expenses for businesses. Because of this link, whatever events cause a change in aggregate supply will cause a change in the short run Phillips Curve, whether positive or negative.
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the economist a.w. phillips published a famous article in 1958 in which he showed a group of answer choices negative correlation between the rate of unemployment and the rate of interest. positive correlation between the rate of unemployment and the rate of interest negative correlation between the rate of unemployment and the rate of inflation. positive correlation between the rate of unemployment and the rate of inflation. next
The Economist A.W. Phillips published a famous article in 1958 in which he showed a negative correlation between the rate of unemployment and the rate of inflation.
The Phillips curve is considered to be an economic model, which is said to be named after William Phillips and it tends to hypothesize a correlation between reduction in unemployment and the rate of inflation.
The Phillips curve appears to have declined as there has been a controversy over the usefulness of the Phillips curve which is in predicting the inflation. Thus, here the negative correlation is shown.
Hence, the Phillips curve tend to remain as the primary framework for understanding and forecasting inflation.
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imagine that in 2019 the economy is in long-run equilibrium. then stock prices rise more than expected and stay high for some time
Referring to Scenario 33-2, aggregate demand swings right, causing the curve to change in that direction.
What does "stock" mean in its simplest form?A stock, usually referred to as equity, is a type of investment that denotes ownership in a share of the issuing company. Shares, also known as units of stock, empower its owners to something like a share of the company's assets and income in proportion to the number of shares they possess.
What are kinds and stock?An investment in a public firm is called a stock. Common shares or preferred stock are the two major types on stock that are often issued when a corporation sells stock shares to the general public.
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The complete question is-
Imagine that in 2019 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time. Refer to Scenario 33-2. Which curve shifts and in which direction?
Prepare a schedule showing the differential allocation and amortization for 20X1. The schedule should present both Canadian dollars and U.S. dollars. (Amounts to be deducted should be entered with a minus sign. Round "Exchange Rate" answers to 2 decimal places and rest of answers to nearest whole dollar.)
Canadian Dollars Exchange Rate U.S. Dollars Investment Cost ($145800/.81) $180,000 0.81 $145,800, Book value of investment on Jan 1 20x1 $97,000 0.81.
What does exchange rate mean to you?A unit of foreign currency is valued in terms of the local currency at the exchange rate. For instance, the value of one US dollar in peso equivalent is the traditional way to express the exchange rate in the Philippines. One US dollar is equivalent to 50 Philippine Pesos, for instance.
How are exchange rates calculated?Simply said, an exchange rate is the price of one country's currency in relation to another country's currency. Therefore, if the exchange rate between British pounds and US dollars is 1.35, £1 will equal $1.35.
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if all monopolistically competitive firms in the industry have profit circumstances similar to the firm shown,
All firms will exit the industry. Because equilibrium occurs when MR=MC.
industryThe manufacturing process is used by all industries to turn material inputs from other sectors and factor inputs from the broader economy into a final product. In the prior pizza example, a pizza manufacturer obtains material inputs from other sectors' producers. It comprises dairy cheese and veggies grown by farmers. Industries are classified into many categories. The industries are classified as heavy or light, local or foreign, durable or non-durable, or manufacturing or construction. Agriculture and industry are inextricably linked since the commodities or products manufactured in industries are created from raw materials derived from agriculture.
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_____technology can be effective for both business-to-consumer (B2C) and business-to-business (B2B) marketing by providing consumers with information A) Virtual B) Push C) Utility D) Pull
By giving consumers information, push technology can be useful for both business-to-business (B2B) and business-to-consumer (B2C) marketing.
What does "push technology" mean?software that automates information transmission to consumers. The Internet, on the other hand, is a "pull" environment where users must actively seek for information. In a "push" environment, information is proactively provided to a person via a Web browser, email, voice mail, or even a pager.
What makes push technology so crucial?Push technology allows for quick client engagement by conveying crucial information to advertisers. Breaking news, sports results, special offers, in-game challenges, the announcement of new items, stock movements, coupons, rewards on retail spending, special events, etc.
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returning back to question 3 in this test, assume that coca cola and pepsi compete in a stackelberg duopoly. suppose coca cola is the leader and pepsi is the follower in choosing their profit maximizing quantities. find the nash equilibrium of the duopoly game and illustrate the best response functions. for full credit, make sure to show your calculations.
that a stackelberg duopoly exists between Coca-Cola and Pepsi. Assume that when it comes to selecting their profit-maximizing volumes, Coca-Cola is the leader and Pepsi is the following. Find the duopoly game's nash equilibrium and illustrate the optimal response function.Coca-Cola and Pepsi share a duopoly.
In a highly competitive market known as duopoly, two different companies that supply practically similar items sell their products to a large number of clients since they have a significant customer base.
In a duopoly market, the manufacturer determines the market price of the goods they offer to consumers, and beverage companies are known to hold a 75% market share.
As a result, Pepsi and Coca-Cola have a duopoly.
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When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds dated January 1, 2017, that mature on December 31, 2026, and pay interest semiannually. When the bonds mature, the issuer records its payment of principal with a debit to _____ in the amount of ____.
Bonds Payable; 50,000
When the market rate is 12%, a company issues $50,000 of 9%, 10-year bonds dated January 1, 2017, that mature on December 31, 2026, and pay interest semiannually. When the bonds mature, the issuer records its payment of principal with a debit to Bonds Payable in the amount of 50,000.
Bonds Payable are a form of debt financing issued by means of organizations, governments, and different entities as a way to raise capital. As a part of the financing arrangement, the issuer of the bonds is obligated to pay periodic interest throughout the borrowing time period and the essential amount on the date of adulthood. normally public utilities trouble bonds to help finance a new electric strength plant, hospitals difficulty bonds for brand new buildings, and governments problem bonds to finance tasks, operating deficits, or to redeem older bonds that can be maturing.
Bonds payable are recorded whilst a business enterprise troubles bonds to generate coins. As a bond issuer, the employer is a borrower. As such, the act of issuing the bond creates a liability. for that reason, bonds payable seem at the legal responsibility side of the agency's stability sheet. Bond interest payable is classified as a present-day legal responsibility because it is scheduled for payment within the next 12 months.
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the objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs while group of answer choices
The objective of information and logistics management in a customer-driven supply chain is to minimize logistics costs delivering maximum customer service.
The most important goal of logistics control is to execute right making plans on transportation modes and stock to be had to fulfill the customers. This ends in a easy freight transferring method and well-timed transport of merchandise or goods.
SCM's number one aim is to hold a corporation afloat and in the long run to pressure it to success. Other goals of SCM consist of enhancing performance and quality, minimizing costs, optimizing transport and distribution and presenting the first-class feasible revel in on your customers.
Logistics is a part of the deliver chain concerned in dealing with the ahead and opposite glide and garage of goods, services, and associated facts among the factor of foundation and the factor of intake to satisfy customers' requirements.
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ompare and contrast the neurobiology of addiction with the sociocultural views of chemical dependency. elaborate on your answer.
The neurobiology of addiction with the sociocultural views of chemical dependency. According to the neurobiology theory of addiction, the addiction cycle can be conceptualized.
The neurobiology theory which involved in the stage of the addiction cycle can be conceptualized and it focuses on the brain and neurological changes. The transition from the drug taking to addiction.
The socio-cultural refers to the cultural of a society and the effects of negative views about society and on each individual is effected cause addiction.
The cultural sometimes be a protected factor against substance use. The neurobiology of addiction with the sociocultural views of chemical dependency.
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In recent years, more than 40 percent of Americans paid no federal income tax. This is partly explained by the fact that the income tax is __________.
In recent years, more than 40 percent of Americans paid no federal income tax. This is partly explained by the fact that the income tax is progressive.
An earnings tax is a tax imposed on people or entities in admire of the earnings or profits earned by means of them. profits tax typically is computed because the product of a tax rate times the taxable income. Taxation fees may also range by type or traits of the taxpayer and the kind of profits. profits tax, levy imposed on people (or family units) and groups. character profits tax is computed on the basis of profits obtained. additionally it is categorised as an instantaneous tax because the burden is possibly on the people who pay it.
underneath present guidelines of the IT Act, any person/commercial enterprise with income irrespective of the quantity earned is liable to file profits tax returns. however, presently tax on income is payable only if the internet taxable earnings for a fiscal exceeds Rs. 2.5 lakh.
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if pattica is suffering from focusing illusion as he chooses a major, then he is likely to: underestimate the probability of a choice. be less happy with his choice than he anticipated. be happier with his choice than he anticipated. overestimate the probability of a choice.
If Pattica is suffering from focusing illusion as he chooses a major, then he is likely to overestimate the probability of a choice. (Option D)
What exactly is meant by the term focusing illusion?The psychologist and Nobel laureate Daniel Kahneman is the one who first created the term "focusing illusion." People often overlook certain facets of their lives in favor of concentrating on others. The concentrating illusion is caused by a discrepancy in attentional allocation between contemplating a state of life and actually experiencing it. When you place an excessive amount of attention on one part of an experience, a cognitive bias known as the focusing illusion occurs.
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The complete question is:
If Pattica is suffering from focusing illusion as he chooses a major, then he is likely to:
(A)underestimate the probability of a choice.
(B)be less happy with his choice than he anticipated.
(C)be happier with his choice than he anticipated.
(D)overestimate the probability of a choice.
you run a regression of a stock's returns versus a market index and find the following: coefficients based on the data, you know that the stock .
The right response is (c), which has a beta which might be anywhere between 0.651 and 1.465.
Describe the stock market index.The stock market indexes can indeed be categorized and divided into several segments due to the index coverage set of stocks.The regional averages that make up the MSCI World index contain stocks from economies with comparable degrees of economic growth.It satisfies investor sentiment for an index of stocks from emerging markets that might experience is similar economic circumstances.
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Complete question:
You perform a regression comparing a stock's returns to an index of the market and discover the following:
Coefficients Lower 95% Upper 95%
Intercept 0.789 -1.556 3.457
Slope 0.890 0.6541 1.465
You know the stock is ____ based on the statistics.
A. obtained a positive alpha that is statistically significant from zero
B. has a beta that is exactly equal to.890
C. has a beta that is most likely to fall between.6541 and 1.465 inclusively
D. poses no significant risk.
After using market research to identify the target audience for his advertising campaign, jorge will next use this information to___
Jorge will first utilize market research to pinpoint the intended demographic for his advertising campaign before using this knowledge to establish clear, quantifiable goals for the effort.
Market research, commonly referred to as "marketing research," is the procedure used to assess the viability of a new service or product by conducting research with prospective customers. Market research enables a business to identify the target market and gather input from customers regarding their interest in the good or service as well as opinions.
This kind of research might be carried out internally, by the business itself, or by a different business that specializes in market research. Surveys, product testing, and focus groups are among methods that can be used. A small stipend or product samples are typically given as payment to test subjects in exchange for their time. A new product or service's research and development (R&D) process must include market research as a key step.
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TRUE/FALSE. also distributes additional shares of stock to existing stockholders on a pro rata basis at no cost to the stockholders. (enter one word per blank.)
A distribution by a company of additional shares of its own stock to its stockholders without receiving any compensation is referred to as: Dividend on stock.
Is there a distribution of stock to shareholders?A dividend is a payment made to shareholders from a company's earnings. Dividends can be paid out in cash or additional stock, and they're a good way for businesses to show the world how profitable they are and how stable their finances are.
What is the term for a distribution of earnings to a company's stockholders?The distribution of a company's earnings to shareholders is known as a dividend and is decided by the board of directors. The distribution of dividends, which can take the form of cash or reinvestment in additional stock, typically occurs quarterly.
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increasing the promotional budget for a product is not advisable in the short-term under which of the following circumstances?
Increasing the promotional budget for a product is not advisable in the short-term under C. Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product .
What is the promotional budget?A promotional budget can be described as the money earmarked for the marketing, advertisement, or sales of a product or brand.
It should be noted that the amount to budget that can be used in making the promotion of a new or existing product will depend on business analytics, market research, and anticipated return on investment, however in the case above in the short-term under Production capacity is maxed out .
Therefore, option C is correct.
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missing options:
A. Demand in the segment is increasing B. Accessibility is less than 80% C. Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product D. One or more competitor has increased price
jed, a homecare nurse, tells his ailing patient, an elderly woman, that unless she lends him money for a business investment, he will prevent her family from being able to see her. she agrees but later changes her mind and asks for her money back. jed claims that they have formed a binding contract. the contract may be rescinded because of select .
Adhesion agreements are solely drafted by one party and provided to the other party with the option to accept or reject them.
When a third party is deceitfully used to persuade an innocent party to engage into a contract, the innocent party can?Rule: A contract that was the result of fraud is not void, but it may be voided at the request of the party alleging fraud. Although the fraudster cannot enforce a contract that is voidable, the innocent party may: (1) cancel the agreement; or (2) waive the flaw, ratify the agreement, and make it enforceable.
When a gullible buyer relies on an expert's advice, the innocent party might be entitled to?The innocent party is not entitled to rescission, even when a gullible buyer relies on an expert's advice.
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Which of the statements below explains how technology has impacted internal control systems? (Check all that apply.)
Technologically advanced systems can record who made entries, the date and time of the entry and the source of the entry.
Technology has encouraged the growth of e-commerce, which means that there is a higher risk of credit card number theft.
Technology can be designed to require the use of password before access to the system is granted.
Technology has reduced the number of processing errors.
Technology increases job creation and fewer job consolidations.
The Correct answer (A) Technologically advanced systems can record who made entries, the date and time of the entry and the source of the entry.
As defined by the Committee of Sponsoring Organizations (COSO), an internal control is a process designed to provide reasonable assurance that an organization’s operations are effective and efficient, its financial disclosures are reliable, and it meets regulatory compliance objectives.
An internal control (also sometimes known as an internal safeguard) can be any mechanism that helps a company to run its processes efficiently and effectively: a rule, a policy, a procedure, a statement from management, and more.
The right controls can help to assure business continuity; prevent costly errors, irregularities, and fraud; and maintain the integrity of financial statements and accounting records.
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Suppose that the economy of Monaco is represented by the aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) curves in the accompanying graph.
a.Based on the graph, Monaco is
b. Which of the following policies eliminate this phenomenon?
c. Suppose that the government implements the policy proposed in part b. Shift the aggregate demand curve on the graph accordingly.
Based on the graph, Monaco is experiencing option A: an inflationary gap.
b. The policies that eliminate this phenomenon is option A: an increase in taxes
c. Suppose that the government implements the policy proposed in part b. Shift the aggregate demand curve on the graph accordingly, then Line AD to the left.
What would cause AD to shift to the left?As the elements of aggregate demand such as consumption spending, investment expenditure, government spending, and having to spend on exports minus imports thus increase, the aggregate demand curve, or AD curve, moves to the right.
With the decline of these components, the AD curve will turn back to the left. The difference between the real GDP level currently and the GDP that would exist if an economy were experiencing full employment is known as the inflationary gap.
Therefore, the rise in real GDP is what drives inflation, and the inflationary gap is employed to measure and analyze the inflationary pressure.
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