(20 points) To fight an ongoing 10% inflation, the government makes raising wages or prices illegal. However, the government continues to increase the money supply (and hence aggregate demand) by 10% per year. The economy starts at full- employment output, which remains constant. a. Using the Keynesian AD-AS framework, show the effects of the government's policies on the economy. Assume that firms meet the demand at the fixed price level. [10 points) b. After several years in which the controls have kept prices from rising, the government declares victory over inflation and removes the controls. What happens? [10 points]
Answers
a. a. In the Keynesian AD-AS framework, the government's policies of prohibiting wage and price increases while increasing the money supply by 10% per year will lead to an increase in aggregate demand.
b. After removing the controls, the economy will likely experience a surge in prices.
a. In the Keynesian AD-AS framework, the government's policies have the following effects on the economy:
1. In the short run, the increase in the money supply by 10% per year leads to an increase in aggregate demand (AD). As a result, there is an upward shift in the AD curve.
2. Since wages and prices are kept fixed by government controls, firms are unable to adjust their prices in response to the increased demand. This leads to a situation where firms are willing to produce and supply more output at the fixed price level. As a result, there is movement along the short-run aggregate supply (SRAS) curve to a higher level of output.
3. The increase in aggregate demand and the movement along the SRAS curve result in an expansion of the economy. Output growth increases while the price level remains fixed.
b. When the government removes the controls after several years, the following changes occur:
1. With the removal of controls, firms are now free to adjust prices according to the market conditions. As a result, they start increasing their prices to reflect the increased demand and the general inflationary pressure.
2. As prices start rising, the short-run aggregate supply (SRAS) curve shifts upward. This is because firms need higher prices to cover their increased production costs, such as wages and raw materials.
3. The upward shift in the SRAS curve reduces the expansionary effect of the increase in aggregate demand. Output growth slows down, and inflationary pressures start to emerge.
4. Over time, the economy moves towards a new equilibrium where the increase in aggregate demand matches the increase in aggregate supply. However, the price level is now higher than it was during the period of price controls.
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Related Questions
Why is creative thinking important to generate business ideas?
Answers
Answer: Creative thinking is necessary for business problem-solving.
Explanation: The skill of creative thinking is a helpful skill because it teaches workers/business owners to find opportunities and ways to improve something even if the situation is challenging. This also lets the person face a problem or situations by a different view. I hope this helped!
Of those listed below, the best example of a pure public good is a. a public school b. a radio broadcast c. a hardcover copy of a book d. a rock concert held in a small auditorium
Answers
Answer:
b. a radio broadcast
Explanation:
The pure public good is a good which is non-rivalrous and non-excludable. Non-rivalrous represents that the goods does not diminshed in the case when more people consumed it while on the other hand, the non-excludable represents that the goods are available to all
Therefore as per the given options, the option b is correct
hence, the other options are incorrect
The main types of markets are called _____.
residential
consumer
industrial
customer
Answers
According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would
Answers
Question options :
a. raise both private and public saving.b. raise private saving and lower public saving.c. lower private saving and raise public saving.d. lower private and public saving.
Answer:
c. lower private saving and raise public saving.
Explanation:
National saving is total of private and public saving minus the country's consumption and government expenditure.
Private saving is income from households minus consumption and taxes.
Formula for public saving is T − G − TR which is government budget surplus through revenue from tax. This is revenue from tax minus government expenditure and transfers.
The data in figure 5. 1 are clear: in terms of after-tax income in the u. S. Between 1979 and 2006:
Answers
The data in figure 5.1 are clear: in terms of after-tax income in the U.S. between 1979 and 2006, there is a significant income gap between the highest and lowest earners.The distribution of income after tax in the United States of America between the years of 1979 and 2006 are indicative of a considerable income inequality.
This income gap is clearly seen in the data from Figure 5.1. During the 1979-2006 period, the after-tax income of the highest earning individuals in the United States significantly increased. Conversely, the after-tax income of the lowest earning Americans did not significantly improve during this period.
The income gap in the United States has grown considerably, leading to a substantial inequality in terms of the distribution of income between the highest and lowest earners.
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when marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by ________.
Answers
When marketers want to promote their products and services through word-of-mouth marketing programs, they typically begin by "developing print and radio advertisements".
The marketing is the term which refers to the planning and executing the strategy or plan around the ideation and target goal, it distribution and promotion of products and services are satisfying the consumers.
The three components are targeting the right audience, conducting competitor research, and using social media strategically. The good marketing is the art of finding, developing, and profiting from marketing opportunities. The three primary methods for uncovering possible product or service improvements.
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product planners need to consider products and services on three levels. at the second level, product planners must ________.
Answers
At the second level, product planners must focus on product attributes and features to meet customer needs and differentiate from competitors. These factors shape customer perceptions and influence purchasing decisions, making them crucial for success in the market.
Product planners must focus on product attributes and features at the second level. This involves determining the specific characteristics and qualities of the product or service that will meet customer needs and differentiate it from competitors.
At the second level, product planners need to delve into the details of the product or service and identify the attributes and features that will resonate with the target market. These attributes can range from functional aspects such as performance, quality, and reliability to more intangible elements like design, packaging, and branding. By carefully considering these factors, product planners can create a compelling value proposition that appeals to customers and sets the product apart from competitors.
Product attributes play a crucial role in shaping customer perceptions and influencing purchasing decisions. For example, in the smartphone industry, product planners consider attributes such as camera quality, battery life, and user interface to attract tech-savvy consumers. In the automobile industry, factors like safety features, fuel efficiency, and interior comfort become critical attributes that product planners must carefully address. By understanding customer preferences and market trends, product planners can identify the attributes that will drive customer satisfaction and loyalty.
In summary, at the second level, product planners must assess and define the specific attributes and features of the product or service that will create value for customers and differentiate it from competitors. These attributes serve as key decision-making criteria for consumers and contribute to the overall success of the product in the market.
Keywords: product attributes, features, differentiation, value proposition, customer satisfaction, branding, market trends.
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On March 14, Complete Computer Service prepays 4 month of office rent of $2,000. The journal entry to record this transaction would be:
Answers
The journal entry to record the prepayment of 4 months of office rent by Complete Computer Service would be:
Debit Prepaid Rent: $8,000
Credit Cash: $8,000
In the first paragraph, the summary of the answer explains that the journal entry to record the transaction involves debiting Prepaid Rent for $8,000 and crediting Cash for $8,000.
The journal entry follows the basic accounting principle of double-entry bookkeeping. By debiting Prepaid Rent, the company increases its asset account for the prepayment of rent. This represents an expenditure made in advance. On the other side, by crediting Cash, the company decreases its cash account as it pays upfront for the rent. The entry records the outflow of cash from the company's accounts.
This journal entry reflects the recognition of the prepaid rent as an asset on the company's balance sheet. Over the next four months, the prepaid rent will be gradually expensed as rent expense on a monthly basis. This process of expense recognition aligns with the matching principle, which aims to match expenses with the revenues they generate in the corresponding period.
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Who watches Riverdale ? if you do can we be friends(pLEASE DON'T DELETE) and also who is your fav character from Riverdale
Answers
Answer:veronica
Explanation:
sure
Answer:
yes i love riverdale my fav character is cheryl or betty
Explanation:
The key in using expert opinion to help forecast demand is ________; that is, comparing estimates produced by different sources. morphing indemnification simulation triangulation modeling
Answers
The key in using expert opinion to help forecast demand is triangulation; that is, comparing estimates produced by different sources.
What is triangulation?Triangulation refers to a strategy, used by researchers to test the validity through collection of information from various sources.
In other words, triangulation is a method of finding the location of an object based on measurements made from two other locations
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Why were the British able to crush the revolt
Answers
Answer: they saw through their plans
6. Why do you think retirement may be a difficult time for some individuals to cope with in the initial stages? (2 marks)A
Answers
Retirement is a major life event that can be both exciting and challenging. While some individuals may look forward to the opportunity to relax, travel, or pursue hobbies, others may struggle with this transition.
There are several reasons why retirement may be difficult to cope with in the initial stages.
Firstly, retirement can represent a significant loss of identity for many individuals. For many people, their job or career is a central part of their identity, and retiring from work can lead to a sense of purposelessness or a loss of meaning. This can be particularly challenging for those who have spent decades in a single career, as they may struggle to find new ways to define themselves.
Secondly, retirement can also lead to changes in social networks. Many people develop close relationships with colleagues over the course of their careers, and retirement can lead to a sense of isolation or loneliness when these relationships are disrupted. Additionally, retirees may find that they have less frequent interactions with others, which can exacerbate feelings of loneliness.
Finally, financial concerns can also contribute to the difficulty of adjusting to retirement. Many individuals may not be adequately prepared financially for this life stage, leading to stress and anxiety about money. This can be particularly challenging for those who have experienced unexpected expenses or health issues in retirement.
Overall, retirement can be a challenging time for individuals to cope with in the initial stages. However, with careful planning and support, retirees can successfully navigate this transition and create fulfilling lives in retirement.
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which document is required to provide information on executive and director compensation? multiple choice question. balance sheet tax return income statement proxy statement
Answers
The proxy statement must provide information on executive and director compensation.
A balance sheet is exactly what kind of a record?A balance sheet, which is a financial statement, lists the assets, liabilities, and shareholder equity of an organisation. One of the three basic financial statements utilised in business evaluation is the balance sheet. The assets and liabilities of a corporation are shown as of the publication date.
Tell me about the balance sheet?A balance sheet is a financial statement that lists an organization's assets, liabilities, and shareholders' equity. It provides a framework for evaluating return rates and capital structure.
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How did advances in physics and chemistry dramatically change manufacturing?
A) made large multinational companies possible
B) forced companies to share control of the production process
C) employed fewer workers
D) created research and development divisions
Answers
Answer:
D
Explanation:
it gave many opportunities for research as it says bc physics is a rabbit hole of knowledge as well as many jobs such as engineering need physics to make things not mess up
Earning and Spending Unit Test
What is typically included in COGS? (1 point)
O raw materials
O storage costs for the inventory
O wages associated with creating the item
O All of the answers are correct.
Answers
Answer:
all the answers are correct
Explanation:
The cost of goods sold include raw materials, storage cost for inventory, and wages. The correct option is D.
COGS include raw materials, inventory storage costs, and wages associated with creating the item. D is the correct answer.
What is covered by a service provider's COGS?It encompasses any expense directly related to creating a good or providing a service. These expenses can cover labour, supplies, and shipping. The goal of COGS is to quantify all variable expenses that are directly related to producing a good or providing a service.All direct expenses incurred to produce the goods a business sells are included in COGS. The majority of these expenses are the product's variable manufacturing costs, such materials and labour, although others may be fixed expenses, like factory overhead.Costs of Goods Sold (COGS) are the expenses incurred over a specific time period to produce your goods. COGS is calculated as starting inventory less purchases minus ending inventory.To Learn more About COGS, Refer:
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Suppose a country were to increase its saving rate. In the long run, which of the following would also increase?a. its income and productivity levelsb.its income growth rate and productivity levelc. its income level and productivity growth rated.its income and productivity growth rates
Answers
Suppose a country were to increase its saving rate. In the long run, its income and productivity levels will also increase.
What occurs in the long run when a country's saving rate increases?
A higher saving rate does lead to a higher degree of output and steady-state capital stock. During the brief transition from a lower to a greater steady-state level of production, the growth rate increases. According to some more recent growth theories, an increased saving rate may reliably increase the rate of economic growth.
How will more saving affect the business in the short- and long-terms?
Although the saving rate boosts economic development in the short run, it has little effect on growth over the long haul. A greater value of s does result in an increase in the steady-state capital/labor ratio, or k. The output per individual in steady state consequently rises.
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according to the quantity theory, the primary effect of an increase in the money supply would be: a) an increase in real gdp. b) a reduction in velocity. c) a decrease in the unemployment rate. d) a proportional increase in prices.
Answers
The overall quantity supplied will increase if the price level rises while the money wage rate stays the same. This occurs because we are aware that while prices are growing, input costs are not rising at the same rate.The answer is an increase in Real GDP.
The law of supply states that the amount supplied and price level are positively correlated. Thus, the supply curve will continue to trend upward. This suggests that there is now more real GDP being produced.When there is a recession, unemployment rises and real GDP growth slows.When there is a broad decline in economic movement, there is a recession, which is a trade cycle withdrawal in economics. It typically occurs when spending completely decreases.According to Okun’s law, when unemployment decreases by 1%, the gross national product (GNP) grows by 3%. This is a very clear affirmation of the relationship between rising unemployment and declining GDP.The relationship between unemployment and GDP is the focus of another interpretation of Okun’s law.According to this, a 2% decline in GDP is caused by an increase in unemployment rates.
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Please select the word from the list that best fits the definition Enjoy music in their free time
Answers
Answer:
Auditory Learners
Explanation:
I got it right on edge 2022.
TRUE OR FALSE: The bigger (more members) the cartel, the easier it is to maintain cooperation.
Answers
The given statement " The bigger (more members) the cartel, the easier it is to maintain cooperation". is false because, in general, the larger a cartel becomes (with more members), the harder it is to maintain cooperation among its members.
1. Diverse interests: With more members in a cartel, there is a higher likelihood of diverse interests, making it difficult to reach consensus on decisions and maintain cohesion.
2. Increased competition: As the number of cartel members grows, the internal competition within the cartel also increases, making it more challenging for members to cooperate and adhere to the cartel's agreements.
3. Monitoring challenges: A larger cartel means more members to monitor and enforce compliance with the cartel's rules and agreements. This can become increasingly difficult as the number of members grows, leading to potential breaches of agreements and reduced cooperation.
4. Greater incentives to cheat: As the size of the cartel increases, individual members may find that they have greater incentives to cheat or break the agreements to gain a competitive advantage, thereby undermining cooperation within the cartel.
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You have decided to continue on with licensing your business to a firm in India. Much to your surprise, the Indian government has announced that it intends to enact local content law requirements. How will this impact the production of your products?
Answers
Answer:
You are not supposed to be allowed to import solar kits through India.
Explanation:
By laws requiring a predetermined reserve marketplace of providers for foreign operators to purchase from, local sourcing laws therefore will inevitably establish circumstances that are favorable to corruption and fraud. That was because regulations on local content enable businesses to use the very goods as well as products manufactured throughout the home economy and don't use imported products.According to the video, what are some decisions that Architects make? Select four options.
how much money a building will be worth when finished
what traffic patterns people will follow
how people will feel when they enter or leave a building
how many laborers are needed for a project
where to put doors, walls, and windows
what building materials to use
which people will be allowed to enter a building
Answers
The decisions that Architects make include:
how much money a building will be worth when finished.how people will feel when they enter or leave a building.where to put doors, walls, and windows.what building materials to use.Who is an architect?It should be noted that an architect simply means an individual who plans, designs and also oversees the construction of a building.
In this case, some of the decisions that Architects make include how much money a building will be worth when finished, how people will feel when they enter or leave a building, etc.
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Answer:
above answer is wrong
Explanation:
Can you help me please ⁉️
fx ? =sum(A1:C1) what number should be in E1 ?
10
3
1
8
I Will give it 5 stars
Answers
As per the data given in the picture shown fx ? =sum(A1:C1) the number should be in E1 is 8 this is bcz of the sum function which gives the summation of all the values in the given range.
What is Sum Function in excel?The Sum function in excel is used to get the sum of all the values you want in a row or column.
example:
As you need sum of A1 to A5 cell then in A6 cell type =SUM(A1:A5) and in A6 you will get the result after addition of all the values given from A1 to A5.
Hence, As per the data given in the picture shown fx ? =sum(A1:C1) the number should be in E1 is 8 this is bcz of the sum function which gives the summation of all the values in the given range.
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What is the meaning of cash in the balance sheet?
Answers
Answer:
The cash balance reported on a balance sheet is the cash in your bank adjusted for payments and receipts that have not yet cleared. For example, writen but not cashed cheques, or recieved but not yet deposited cheques.
Explanation:
When planning for inventory, a company's goal is to have?
Answers
Answer:
The primary objective of inventory planning is to satisfy the needs of company customers. Whether the customer is a direct consumer, a distributor or another department within the company, inventory management should provide the best-quality service.
Each diode has its own maximum supported current depending on its physical characteristic. Select one: True False
Answers
True. Each diode has a maximum supported current determined by its physical characteristics. This limit is specified by the manufacturer and should not be exceeded to ensure proper operation and prevent damage to the diode.
Diodes are electronic components that allow current to flow in one direction while blocking it in the opposite direction. They have a maximum current rating, which is the maximum current that the diode can safely handle without being damaged. This rating is typically specified by the manufacturer and is an important parameter to consider when designing electronic circuits.
Exceeding the maximum supported current can lead to overheating and irreversible damage to the diode. It can cause the diode to fail, resulting in circuit malfunction or even complete failure. Therefore, it is crucial to choose a diode with a current rating that is suitable for the intended application and to ensure that the operating current does not exceed this limit.
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Which credit option carries the greatest loss if you are unable to recover it?
Answer: A $200 unregistered pre-paid card
Answers
The Financial Accounting Standards Board (FASB) issued the final
current expected credit loss (CECL) standard on June 16, 2016. The
new guidance particularly impacted community financial institutions
by modifying or replacing existing impairment models for financial
assets, such as trade receivables, loans, debt securities, and purchased
credit-deteriorated assets. This guide is meant to serve as a practical
and illustrative document to assist with implementation efforts.
So the answer is put it on my debt.
The credit option that would lead to you having the greatest loss if you don't recover it is A $200 unregistered pre-paid card.
Why would an unregistered prepaid card causes losses?A prepaid card is one that you load money into before you use it. When this is unregistered, it means that certain details have not yet been provided.
Unregistered prepaid cards can cause losses because there are less protections by the issuer if it is stolen or lost. This is why it is important to register your cards when you acquire them.
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I need help i dont know the answers to these this is 28 points
Answers
Answer:
Selling
Pricing
Marketing Information Management
Promotion
Product Service Management
Market Planning
Channel Management
Product Service Management
Pricing
Promotion
Market Planning
Selling
Channel Management
Market Information Management
Marketing
Products
Goods
Services
Target Market
Demographics
Geographics
Psychographics
Product
Price
Place
Promotion
Explanation:
In what three ways does the government affect production of goods and services in the US economy?
Answers
Complete this paragraph about the impact of trade on American jobs based on the video you just watched.
New Balance manufactures its shoes in
. The Obama administration proposed a trade agreement called the
. It is
to hire Vietnamese workers than American workers. New Balance executives are hoping to avoid their workers losing their
because of the trade agreement.
Answers
Answer:
The radius of the earth is 6371 km and the weight of an object on the earth is 800 N. The weight of the object at an altitude of 6371 km above the surface of the earth
Answer:
New England
Trans-Pacific Partnership
10 times cheaper
Jobs
Explanation:
why did the orang stop in the middle of the road
Answers
The reason why the the orange stop in the middle of the road is because it ran out of Juice.
What isthe meaning of the riddles?Thew meaning of the riddle is that when there isno fuel or energy that is been usedn the process of powering something then the object will eventually stop.
It should be noted that this riddlesis tring to tell us about life, where neccessary energy is needed for things to happen, however we can see that everything is life needs energy which implies that for theorange to be moving there must be juice.
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