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 65 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
Gracias!

essyface1

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

The Cardiac Landmarks. A = Aortic Area; P = Pulmonic Area; E = Erb’s Point; T = Tri The Cardiac Landmarks. A = Aortic Area; P = Pulmonic Area; E = Erb’s Point; T = Tri
The anterior pituitary is sometimes called the master gland because it secretes many hormones that r The anterior pituitary is sometimes called the master gland because it secretes many hormones that r
The leaky-barrel model: a settling-point model of eating and body weight homeostasis. The leaky-barrel model: a settling-point model of eating and body weight homeostasis.
Long Term Control Medications Long Term Control Medications
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ... The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ...
Video: Hormonal feedback loop components

For a complete list of videos, visit our video library