If an economy has fully flexible prices and demand unexpectedly increases, you would expect the economys real
Question:
If an economy has fully flexible prices and demand unexpectedly increases, you would expect the economy’s real GDP to:
a. increase.
b. decrease.
c. remain the same.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
The answer is c remain the same Heres why Full price flexibility In an economy with fully flexible p...View the full answer
Answered By
Robert Mwendwa Nzinga
I am a professional accountant with diverse skills in different fields. I am a great academic writer and article writer. I also possess skills in website development and app development. I have over the years amassed skills in project writing, business planning, human resource administration and tutoring in all business related courses.
4.90+
187+ Reviews
378+ Question Solved
Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
Question Posted:
Students also viewed these Business questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
-
Why does the following code fragment not have the same effect as the code fragment in the previous question? x.next t.next = t; = x.next;
-
The maturity value of a seven-month promissory note issued July 31, 2017, is $3275. What is the present value of the note on the date of issue if interest is 7.75%?
-
Petty, a general contractor, made a series of purchases from Field Lumber Company. Fields records showed a total price of $1,752.21. Petty admitted he owed $1,091.96, but denied liability for the...
-
The channel in Fig. P10.48 has two floodplains as shown. Find the discharge if the center channel is lined with brick and the two floodplains are lined with cobblestones. The slope \(S_{0}\) is...
-
Webb Solutions, Inc. has the following financial structure: Accounts payable ..........$ 500,000 Short-term debt .......... 250,000 Current liabilities .......... $ 750,000 Long-term debt .............
-
On June 1, Blue Spruce Corp. Ltd. borrows $76,500 from Acme Bank on a 6-month, $76,500, 8% note. The note matures on December 1. (a) Prepare the entry on June 1. (Credit account titles are...
-
If the demand for a firms output unexpectedly decreases, you would expect its inventory to: a. increase. b. decrease. c. remain the same. d. increase or remain the same, depending on whether or not...
-
If an economy has sticky prices, and demand unexpectedly increases, you would expect the economys real GDP to: a. increase. b. decrease. c. remain the same.
-
You are the marketing manager of Citibanks Online Banking Division. How would you apply the concepts of providing value and customer satisfaction and retention to designing and marketing effective...
-
Show that the set K = { 3 t 2 + 2 t + 1 , t 2 + t + 1 , t 2 + 1 } spans P 2 . ( b ) Is K from part ( a ) a basis for P 2 ? Explain.
-
What would be the annual percentage yield for a savings account that earned $54 in interest on $750 over the past 365 days?
-
How can organizations leverage emotional intelligence assessments and training interventions as part of their talent development and succession planning strategies, to identify high-potential...
-
George is a street vendor of chicken wings. He offers them in mild, medium, and flaming varieties, but most customers preter the hottest option. Typically, his sales are comprised of 2 0 % ?mild, 2 0...
-
Can you analyze the impact of emotional intelligence on leadership effectiveness, including its role in fostering transformational leadership behaviors, adaptive decision-making strategies, and team...
-
Explain why accrual-basis accounting is more appropriate than cash-basis accounting for most businesses.
-
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
-
True or false. To the extent that they succeed in their goals, unions only ever reduce productivity and efficiency. 5 9
-
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. a. What is...
-
Suppose that a delivery company currently uses one employee per vehicle to deliver packages. Each driver delivers 50 packages per day, and the firm charges $20 per package for delivery. a. What is...
-
1. Define the unique characteristics of perfect competition. Does perfect competition exist in the real world? 2. How do monopolies maximize profits? 3. What are the unique characteristics of...
-
Describe the financing mechanism for providing health insurance in Italy - that is, what is the distribution/sources of funds used to provide health care coverage?
-
Are stock valuation models like the Dividend Discount and Constant Growth models better methods to determine a stock's intrinsic value than using a simple P/E Multiple approach? Growth investorsseek...
Study smarter with the SolutionInn App