Answer the questions below. a, Discuss why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output. b. Discuss why the aggregate supply (AS) curve is relatively vertical within the ranges of high aggregate output. c. Which part of the AS curve, fiscal policy works better and why, explain.

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter24: Fiscal Policy
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Answer the questions below.
a, Discuss why the aggregate supply (AS) curve is relatively flat within the low ranges of
aggregate output.
b. Discuss why the aggregate supply (AS) curve is relatively vertical within the ranges of
high aggregate output.
c. Which part of the AS curve, fiscal policy works better and why, explain.
Transcribed Image Text:Answer the questions below. a, Discuss why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output. b. Discuss why the aggregate supply (AS) curve is relatively vertical within the ranges of high aggregate output. c. Which part of the AS curve, fiscal policy works better and why, explain.
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