Ask Question
BusinessBusiness
13 January, 22:38

Assume the countries of Ornania and Kumbagi are major trading partners. Ornania is currently in long-run macroeconomic equilibrium. As a result of a recession in its economy, Kumbagi decreases its demand for goods produced in Ornania. What will occur in Ornania in the short run?

+1
Answers (1)
  1. 13 January, 22:55
    0
    Answer: The aggregate demand curve will shift to the left, resulting in a recessionary gap

    Explanation:

    Since Ornania and Kumbagi are trading partners and Kumbagi later reduced its demand for the goods produced in Ornania, this will lead to the aggregate demand curve shifting to the left in Ornania and can lead to a recessionary gap.

    The aggregate demand curve will shift to the left because there is a reduction in demand. Contractionary fiscal policy is also another reason for a shift in the aggregate demand curve to the left.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assume the countries of Ornania and Kumbagi are major trading partners. Ornania is currently in long-run macroeconomic equilibrium. As a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which is riskier, but has the potential for a higher rate of return? saving or investing
Answers (2)
Why is sex so fun I have jeh a kdkk j that
Answers (1)
The standard cost of product 5252 includes 1.90 hours of direct labor at $14.30 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $14.
Answers (1)
If the factory overhead is overapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.)
Answers (1)
Personal finance chapter 5. A Cerificate of desposit will often result in a penalty for withdrawing funds beofre the maturityy date.
Answers (1)
New Questions in Business
For a given product demand, the regression equation is 53 - 4x. The negative sign on the slope of the equation: A) is a mathematical impossibility. B) is an indication that the forecast is biased, with forecast values lower than actual values.
Answers (1)
For most firms, the major difference between accounting profit and economic profit is that a. accounting profit omits the salaries of managers, and therefore, it is generally greater than economic profit. b.
Answers (1)
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 2021. Management intends to have the investment available for sale when circumstances warrant.
Answers (1)
Messersmith Company is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Messersmith made payments to the construction company of $3000000 on 7/1, $6300000 on 9/1, and $6000000 on 12/31.
Answers (1)
A client in the 28 percent marginal tax bracket is comparing a municipal bond that offers a 4.8 percent yield to maturity and a similar risk corporate bond that offers a 6.55 percent yield. Which bond will give the client more profit after taxes
Answers (1)
Home » Business » Assume the countries of Ornania and Kumbagi are major trading partners. Ornania is currently in long-run macroeconomic equilibrium. As a result of a recession in its economy, Kumbagi decreases its demand for goods produced in Ornania.
Sign Up Forgot Password?