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2 years ago

Aggregate demand curves slope downwards for each of the following reasons except

1 answer:

7 0

Reasons for an aggregate demand curve sloping downwards
1) Pigou's wealth effect - drop in the price level induces consumers to spend more, thereby increasing the aggregate demand.

2) Keynes's interest-rate effect - a drop in the price level decreases the interest rate, which increases the demand for investment and thereby increases aggregate demand.

3) Mundell-Fleming's exchange-rate effect. - price level drops, interest rates fall, domestic investment in foreign countries increases, the real exchange rate depreciates, net exports increases, and aggregate demand increases.

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Duckistan Production Possibilities A B C D E Civilian Goods 20 18 14 8 0 Military Goods 0 1 2 3 4 Herbania Production Possibilit

olganol [36]

Answer:

B. Herbania is technologically superior to Duckistan in producing civilian goods.

Explanation:

Duckistan Production Possibilities

A B C D E

Civilian Goods 20 18 14 8 0

Military Goods 0 1 2 3 4

opportunity cost - ¹/₁₈ ¹/₇ ³/₈ 4 civilian goods

opportunity cost 20 18 7 2.7 - military goods

Herbania Production Possibilities

A B C D E

Civilian Goods 40 36 26 14 0

Military Goods 0 1 2 3 4

opportunity cost - ¹/₃₆ ¹/₁₃ ³/₁₄ 4 civilian goods

opportunity cost 40 36 13 4.7 - military goods

Herbania has an absolute advantage in the production of civilian goods. Since it also has a lower opportunity cost of producing civilian goods, therefore, it also has a comparative advantage at producing civilian goods. Assuming that resources are equal in both countries, then we can assume that Herbania is technologically superior in the production of civilian goods.

Dukistan has a lower opportunity cost of producing military goods, therefore, it has a comparative advantage at producing military goods.

3 0

2 years ago

_____ means the extent to which the idea is viable and realistic, and the extent to which you are aware of internal and external

Ostrovityanka [42]

Flexibility is the word you’re looking for.

4 0

2 years ago

As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation fo

nalin [4]

Answer:

Explanation:

The explanation of the following transactions is given

a. Debit Equipment and credit Cash.

In this transaction, the equipment is purchased for cash so the equipment account is debited and the cash account is credited.

b. Debit Dividends and credit Cash.

In this transaction, the dividend is paid for cash so the dividend account is debited and the cash account is credited.

c. Debit Wages Payable and credit Cash.

In this transaction, the Accrued wages are paid for cash so the wages payable account is debited and cash account is credited.

d. Debit Equipment and credit Common Stock

In this transaction, the equipment is purchased for exchange of the common stock so the equipment account is debited and common stock is credited.

e. Debit Cash and credit Unearned Revenue

In this transaction, the cash is received for service rendered in the future so the cash account is debited and Unearned Revenue is credited.

f. Debit Advertising Expense and credit Cash

In this transaction, the advertising expense is paid for cash so the advertising expense account is debited and cash is credited.

g. Debit Cash and credit Service Revenue.

In this transaction, the cash is received for service performed so the cash account is debited and service Revenue is credited.

5 0

2 years ago

As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she n

ExtremeBDS [4]

Answer: disturbance handler; decisional; more through others.

Explanation:

As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she needs to fulfill many roles. Candace schedules employees for shifts at the front desk, in the dog play areas, and in the bathing and grooming rooms.

This is part of the disturbance handler role of management, which falls under the decisional component. To adapt to being a manager, Candace has had to get things done by working more through others.

4 0

2 years ago

Which of the following approaches does the following statement represent: This approach takes into account non-market forces tha

soldi70 [24.7K]

Answer:

(a) Stakeholder approach

Explanation:

A stakeholder approach is the practice that managers formulate and implement processes that satisfy stakeholders' needs to ensure long-term success. According to the degree of participation of the different groups, the company can take advantage of market imperfections to create valuable opportunities.

8 0

2 years ago

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