According to mainstream business cycle theory, a. the money wage rate is sticky and consequently if aggregate demand grows faster than potential gdp, an inflationary gap emerges b. the money wage rate is sticky and consequently if aggregate demand grows faster than potential gdp, a recessionary gap emerges c. in a business cycle expansion, short-run aggregate supply increases by more than aggregate demand d. the economy is always at full employment

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer