The U.S. macroeconomy is in a short-run equilibrium at Q1 and P1. What is going to happen in thelong-run?PР1QNQ₁SRAS1ADQThis is a diagram with price on the vertical axis and quantity on the horizontal axis. There is a placemarked on the horizontal axis with a QN. There is an upward sloping line labelled SRAS and adownward sloping line labelled AD. The place these two lines intersect is labelled Q1 on thehorizontal axis and P1 on the vertical axis. Q1 is to the right of QN.O The aggregate demand curve will shift left leading to falling prices and falling output.O SRAS curve will shift left leading to rising output and rising prices.OSRAS curve will shift left leading to rising prices and falling output.

The issue you presented has to do with macroeconomics, more especially with the examination of long-…

Answered: long-run? P SRAS1 going

Business

Economics

long-run? P SRAS1 going

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Tom leases a farmer's field for $80 a day and grows melons. He pays students $90 a day to pick…

A: Given, Leasing price = $80 per day Payment to students = $90 per day Capital leasing cost = $40 per…

Q: Explain why firms face different costs in the long run than in theshort run.

A: The firm is operated under Short-run means its production is for a short period of time for e.g. One…

Q: why do the moddenn day firms focus non economic objectives. explain

A: The basic objective of any firm is profit maximization.

Q: otal cost is equal to average cost times marginal cost. a. True O b. False

A: Answer - True Total cost is equal to average cost times marginal cost. Explanation Total cost is…

Q: As output increases, total fixed cost A. increases; decreases B. does not change; decreases C.…

A: total cost is the cost which is incurred by producer for production by using all fixe and variable…

Q: Tolal Fbed Total Varlable Cost Tatal Total Cost Cost Variable Cost Flved Cost Product Cast 60 00 45…

A: FIXED cost is independent of output produced thus the required fixed cost is $ 60 whereas variable…

Q: Cost LRAC 40 30 N 20 10 100 200 400 800 Output

A: The firm earns maximum profit at the point where the average costs are the minimum. To understand…

Q: A Managment instutute can operate for a maxium 12 hours .lectures are the outout of the institute…

A: The production function determines all the input bundles that produce the same output level.The…

Q: = A clothing company determines that its marginal cost, in dollars per dress, is given by the…

A: Here, the marginal cost function is given as: C'(x)=-(2/25)x+53, when x is less than and equal to…

Q: 5. The following are some of the costs of a clothing manufacturer. State which among them will you

A: Fixed costs, otherwise called roundabout costs or upward costs, are operational expense that are not…

Q: Units TP VC FC TC МС of Labor

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 20. If there are implicit costs of production Economic profit will be equal to accounting profit A.

A: Accounting profit is calculated by using the formula revenue minus expenses that is the net income…

Q: As a firm expands its output, its average fixed cost does which of the following? O It declines…

A: Average Fixed Cost is the total fixed cost per unit of output. AFC = TFC/Q

Q: Inder which of the folowing axamples is tlikaly that the accounting profit is positive and the…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What happens when a company doesn't follow economic thoery and charges pries below the marginal…

A: At the point when an organization doesn't follow economic theory and charges costs below the…

Q: 49. The long run is a A. O Period of three years or longer B. O Period long enough to allow firms to…

A: Long run refers to the period of time where there is no fixed cost and all the factors that are…

Q: Refer to Figure 3. Assume the monopoly behaves competitively, then equilibrium would be a. b. C. d.…

A: A monopoly firm produces at the intersection of MR and MC curves. A competitive firm produces at…

Q: Eva runs a hot dog cart at the sports stadium. Eva has no skills, no job experience, and no…

A: explicit costs are the cost which are incurred by the producer in order to run the bussiness. In…

Q: wer as soon as possib

A: Every factor of production gets rewarded equal to its Marginal product. Marginal product is the net…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: to do so. In this task, please, write all answers for TC TC VC FC AC MC AVC 1 456 2 215 3 130 4. 770…

A: TC => total cost VC => variable cost FC => fixed cost AC => average cost MC =>…

Q: 6.12 (Related to the Don't Let This Happen to Youin his autobiography, T. Boone Pickens, a…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Question 13 A firm suffers from diseconomies of scale when it increases output. Which one of the…

A: Diseconomies of scale refers to what is happening in economics when a business expands its…

Q: 5. The following are some of the costs of a clothing manufacturer State which among them will you…

A: To find : Which will be fixed cost

Q: I want correct answer you will get wrong answer then I will give you down upvote.....

A: To calculate the average fixed cost (AFC) of washing 80 cars, we'll need to know the fixed costs.…

Q: EXplain the profit and lass Possi bilities of a price taker firm aand graphicoally draww tMe JUPPIY…

A: There are four possibilities of profit and loss in a price taking firm. These are Supernormal…

Q: 2.6 The following table represents data for Sally's Salon. Draw a graph showing the total product,…

A: 2.6) Labor refers to the human resource that is used as a factor input in the production process.…

Q: is t possible for accounting profit to be positive and economic profito be negative? OA No, economic…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: 1.Quantity 2. Pnce 3. TR 4. Cost per unit 5 TC

A: The profit of a firm equals the total cost, which is the total cost incurred by the firm, subtracted…

Q: What specific data must a firm examine to decide the quantity of product it should produce to make…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Refer to Figure 3. Under a monopoly, profits are a. $50 b. $1200 C. $0 $800

A: Monopoly market is characterized by the single firm only. The price is determined where the MR = MC.…

Q: 26. Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to…

A: Labor is one of the four factors of production used in production of goods and services, among land,…

Q: Christ Embassy ICA CHORCHS Complete the fallowing coA schedules LoutPutioalcostlAverage coA Marginal…

A: Average cost is minimum at output 4 where AC = 20/4 = 5. MC is minimum at output 4 where MC = 2

Q: None

A: Consider the following formulas: TC=TFC+TVCMC=ΔQΔTCAVC=QTVCAC=QTCFixed cost refers to the costs…

Q: What is true about economic profit? a) It considers the explicit and implicit cost of a decision b)…

A: Economic Profits: Revenue – Implicit cost – explicit costs Accounting profits = Revenue - Explicit…

Q: True or false: a change in fixed costs will change marginal cost. a.True b.False

A: cost of production refers to the monetary value incurred in the process of production and cost is…

Q: Explain how having more work-in-process inventory can improve the efi ciency of a process. How can…

A: In-process goods or work-in-process inventory refers to a company's half or partially-finished…

Question

The U.S. macroeconomy is in a short-run equilibrium at Q1 and P1. What is going to happen in the
long-run?
P
Р1
QN
Q₁
SRAS1
AD
Q
This is a diagram with price on the vertical axis and quantity on the horizontal axis. There is a place
marked on the horizontal axis with a QN. There is an upward sloping line labelled SRAS and a
downward sloping line labelled AD. The place these two lines intersect is labelled Q1 on the
horizontal axis and P1 on the vertical axis. Q1 is to the right of QN.
O The aggregate demand curve will shift left leading to falling prices and falling output.
O SRAS curve will shift left leading to rising output and rising prices.
OSRAS curve will shift left leading to rising prices and falling output.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the problem:

VIEW

Step 2: Answer with explanation:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If there are implicit costs dais Leuk of production, then economic profit will be greater than accounting profit.a False.b. True.
I need the answer as soon as possible
f production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the aver ecimal places.) Output (q) VC C MC AFC AVC AC 1 $100 $64 112 $164 $64 48 $100.00 $64.00 $164.00 50.00 56 00 106.00 2 100 212 3. 100 144 244 32 33.33 48.00 4. 100 160 16 25.00 40.00 65.00 100 192 292 -32 20.00 58 40 9. 100 340 48 16.67 40.00 56.67 7. 100 -304 404 14.29 4343 57.71 100 -384 484 80 48.00 60.50 53.33 59.20 9. 100 480 580 96 11.11 64.44 10 100 592 112 10.00 F.
32. The marginal cost curve is labeled: a L b. I. C. II d IV
Question give an example each of firms that you feel have small, moderate and large MES
Son 5 Marginal cost is given by 30 + 20Q - 12Q2. Fixed cost is 100. What is the average cost? Henüz 30 OA3Q? + 10Q + 70 + cevaplanmad 16,00 azennden aretlenmis 100 O B. 3Q? + 20Q + 30 + Sonyu aretle 100 OC 40 + 10Q + 30 + 30 O D. 4Q? + 10Q + 70 +
IAN GE Student Resources - Faculty Resources - Academic Resources - Ime grupiI Delow IIUIUUES two piunt Sizes us musuuteu uy ACr UnU ACZ. AC1 AC2 AC1 AC2 LRAC Q1 02 Output per time period Refer to the graph above to answer this question. Which of the following statements is correct if a firm is operating at point a on AC1? Select one: O a. The firm is achieving MES. O b. Building a larger plant would result in lower long-run average cost. O c. Building a larger plant would not result in lower long-run average cost. od. The firm has achieved capacity output. O e. An increase in the output would not lower costs. Clear my choice Staut o gao
Which is most hkely to be a constant cost industry? O a Widgits do not require specialized equipment or workers, and Widgits have been produced the same way for a long time O b. Gadgets require a special metal, and the world is starting to run out of this metal Oc Gruffles require a special metal, and people have just started to use this metal. Now, engineers are quickly finding better ways to mine this metal. Od. These are all equally likely to be constant cost industries Oe. None of these could be constant cost industries In Canada, here is the market for Woogets Quantity Demanded- 300 - P Quantity Supplied = 2P The world price is 50, and Canadians can buy and sell as much as they want at this price. What is consumer surplus in Canada, if there is completely open trode? Write the answer as a number. For example, if you think the answer is 100,971, write 100971
Chris The use of fixed cost items to magnify the firm's results Correct! What are some uses for break-even analysis? Select all that apply, then click Submit below To see how much the changes in cost affect variable costs. To see how much the changes in volume affect cost and profit. To determine the magnitude of operations necessary to avoid loss. To figure out the most efficient level of fixed costs for the firm. To figure out the most inefficient way to make profit. To figure out the operating leverage. Submit