In the long run, the aggregate supply curve: Slopes upward and to the right Slopes downward and to the right Is the same as the short run aggregate supply curve Is vertical Is horizonal

Q: If the short-run aggregate supply curve intersects the aggregate demand curve to the right of…

A: The potential level of GDP is the level which can be achieved by the economy through the efficient…

Q: The following event has occurred:  The U.S. government has issued tax rebates to households.  This…

A:

Q: Which of the following does the slope of the aggregate demand curve indicate? As the price level…

A: Aggregate demand refers to the overall demand for goods and services in an economy. Aggregate supply…

Q: Suppose that the United States is at full employment. Then the federal government cuts taxes, and…

A: Hello dear student, You have asked multiple questions. I am going to answer one question out of the…

Q: the difference between the short-run aggregate supply curve and the long-run aggregate supply.

A: ANSWER   the difference between the short-run aggregate supply curve and the long-run aggregate…

Q: Which of the following would cause the aggregate price level to fall and the equilibrium level of…

A: Both aggregate demand and supply will cause the change in price level and real GDP in the short run.…

Q: The graph shows a short-run aggregate supply curve. Please move the endpoints to turn the curve into…

A: ANS In the long run (LR) the amount of output (o/p) produced by an economy is at its potential…

Q: Starting from long run equilibrium,  use the basic aggregate demand and aggregate supply diagram to…

A: Aggregate demand shows the total expenditure done in the economy. Aggregate supply curve shows the…

Q: The effects of a higher than expected price level are shown by   shifting the short-run aggregate…

A: The prices that the firms expect to charge is called the expected price-level. Inflation can lead to…

Q: Q35 The positive relationship between short-run aggregate supply and the price level indicates…

A: Aggregate supply curve is related to price and output. As money wage rate increases, aggregate…

Q: Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the…

A: In economics, supply is the quantity of goods that is being produced and supplied by the producer to…

Q: In the long run, the price level is determined by   a. the short-run aggregate supply curve and…

A: In the long run, the price level is determined by the short-run aggregate supply curve and the…

Q: In the Aggregate Demand – Aggregate Supply Model, one reason for the downward slope of the Aggregate…

A: Aggregate demand refer to the total demand of all final goods and services in an economy during a…

Q: The vertical portion of the aggregate supply curve shows that at full employment an increase in the…

A: Macroeconomics studies the economy as a whole. It analyzes the national income, employment,…

Q: The upward slope of the short-run aggregate supply curve is based on the assumption that:   1)…

A: When talking about aggregate demand and aggregate supply, the slope of thise curves depends upon…

Q: A breakthrough in solar energy research that halves the cost of electricity will have no effect on…

A: "Electricity act as an important input in the production process of all the commodities and…

Q: why the short run aggregate supply curve has a positive slope and the long run supply curve a…

A: The aggregate supply is the total supply of goods and services that firms in the economy willing to…

Q: he full employment level of real GDP is $6 billion for the recently formed island nation of…

A: In long the vertical line of the supply curve means that the supply is insensitive to prices.…

Q: The long-run aggregate supply curve is... A) Upward sloping at the potential GDP level B) Vertical…

A: Aggregate supply curve shows combinations of price and quantity of output supplied in the economy.

Q: Which of the following causes the aggregate supply curve to shift inward? a. Increase in quantity of…

A: Aggregate demand refers to the total demand for goods and services. Moreover, there is an inverse…

Q: A decrease in the nominal wage will cause the aggregate supply curve to   a. become steeper. .   b.…

A: When there is a change in price of good, it causes movement along the demand curve or supply curve.…

Q: The long-run aggregate supply curve is upward-sloping and becomes steeper at output levels above…

A: Aggregate supply represents the total goods and services that producers produce and sell in the…

Q: Explain aggregate supply curve. Use the aggregate supply curve to explain the policies which…

A: Aggregate Supply curve: Total stock or homegrown last stockpile is the absolute inventory of…

Q: Use AD-AS analysis to show how the introduction of new technology that increases the productivity of…

A: The Aggregate Demand (AD)-Aggregate Supply (AS) model shows what determines the total demand and…

Q: Part 1: Long-Run Self Adjustment- Draw a correctly labeled graph of aggregate demand, aggregate…

A: An increase in consumption spending increases aggregate demand, shifting AD curve rightward,…

Q: Which of the following are assumed to remain unchanged along a given short-run aggregate supply…

A: The aggregate supply curve depicts the quantity of real GDP that is supplied by the economy at…

Q: Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the…

A: Aggregate supply is the relationship between the price level and output of the economy. In the short…

Q: The aggregate supply curve is   a. relatively flat at low levels of output.   b. generally flatter…

A: Aggregate supply is the total volume of goods and services that are produced in the economy.

Q: Which of the following shifts the long-run aggregate supply curve to the left? Either an increase…

A: The long-run aggregate supply is always a vertical curve as the potential output is not related to…

Q: Which of the following would cause a shift in the short run aggregate supply curve? A decrease in…

A: PLEASE FIND THE ANSWER BELOW.

Q: Explain whether each of the following events shifts the short run aggregate supply curve the…

A: The aggregate demand curve shows the aggregate expenditure incurred on the final goods and services…

Q: The real wealth effect explains why the aggregate supply curve is horizontal in the long run.…

A: The real wealth effect explains that if the price level decreases, then the purchasing power of the…

Q: Suppose the full-employment level of real output (Q) is $250 and the price level (P) is initially…

A: (a) When the price level suddenly rising from 100 to 125 due to an increase in aggregate demand,…

Q: An improvement in the level of technology in an economy will result in An upward movement along the…

A: ANSWER   An improvement in the level of technology in an economy will result in

Q: hifts in the Aggregate Supply Curves List and discuss the things that will make the Short Run…

A: Supply shocks are occasions that shift the aggregate supply curve. We characterized the AS bend as…

Q: Consider the different characteristics of the aggregate demand curve and the short‑run aggregate…

A: 1.  Shift when consumers wealth changes is a characteristic of Aggregate Demand. The government…

Q: The horizontal axis of the aggregate demand and aggregate supply model measures the overall The…

A: Aggregate demand and aggregate supply curve shows the market equilibrium. The horizontal axis…

Q: Draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is…

A: The economy is in short run equilibrium where aggregate demand intersects short run aggregate supply…

Q: Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the…

A: The supply curve is a visual illustration of the association between the expense of a product or…

Q: Which of these will shift the short-run aggregate supply curve to the right? an increase in the…

A: Short run Aggregate supply curve is an upward sloping curve, depicting positive relation between…

Q: The long-run aggregate supply line will necessarily shift to the right when Group of answer choices…

A: A long-run aggregate supply curve is vertical at the level of production the economy can produce…