This topic contains a solution. Click here to go to the answer

Author Question: The assumption that the marginal utility of wealth diminishes implies that A) total utility falls ... (Read 99 times)

joe

  • Hero Member
  • *****
  • Posts: 627
The assumption that the marginal utility of wealth diminishes implies that
 
  A) total utility falls when wealth increases.
  B) the marginal utility of wealth is negative.
  C) total utility increases with wealth and each additional unit of wealth increases total utility by a smaller amount.
  D) total utility increases with wealth and each additional unit of wealth increases total utility by the same amount.

Question 2

What is the difference between the long-run aggregate supply and the short-run aggregate supply curves?
 
  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

InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

C

Answer to Question 2

The long-run aggregate supply curve, LAS, is the relationship between the price level and real GDP when real GDP equals potential GDP. The LAS curve is vertical. Along the LAS curve, both the prices of goods and services and the prices of resources, such as the money wage rate, change. The short-run aggregate supply curve, SAS, is the relationship between the price level and the quantity of real GDP supplied in the short run when the money wage rate and other resource prices are constant. The SAS curve slopes upward. Along the SAS curve, only the price level changes; the money wage rate and other resource prices are constant. The SAS curve shifts leftward when the money wage rate (or other costs) rise.




joe

  • Member
  • Posts: 627
Reply 2 on: Jun 29, 2018
:D TYSM


Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

For a complete list of videos, visit our video library