This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to the above figure. Suppose the original long-run equilibrium was at point B. What could have ... (Read 81 times)

lak

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Refer to the above figure. Suppose the original long-run equilibrium was at point B. What could have caused the move to the current equilibrium?
 
  A) Aggregate demand must have decreased.
  B) Input prices must have increased, causing long-run aggregate supply to increase.
  C) Decreases in the price level caused short-run aggregate supply to fall.
  D) A temporary reduction in production due to bad weather.

Question 2

Why is the value added by each producer included in the calculation of GDP instead of his sales revenue?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bigsis44

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

The revenue or final value of a good includes the value added at each stage of the production process. It is not possible to find out the contribution of each producer in the production process if only the revenue earned by the firm selling the final good is tracked. Therefore, the value added by each producer is included in the calculation of GDP.


lak

  • Member
  • Posts: 546
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Major marma point locations. Major marma point locations.
How to find the equation of a line that is perpendicular to a line passing through a point How to find the equation of a line that is perpendicular to a line passing through a point
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
As shown in the figure, a large open tank contains a layer of oil ( density 450 kg/m3) floating ... As shown in the figure, a large open tank contains a layer of oil ( density 450 kg/m3) floating ...
What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ... What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ...
Video: Component of feedback systems & Communication and regulation of body systems

For a complete list of videos, visit our video library