Briefly explain what effect and why, a slowdown in Technological progress would have on the Aggregate Supply curve.
Want to see the full answer?
Check out a sample Q&A here
Related Economics Q&A
Find answers to questions asked by students like you.
Q: What is the long run aggregate supply curve
A: An aggregate supply curve shows the relationship between the output produced in an economy and the…
Q: If aggregate supply is vertical, what role does aggregate demand play in determining output ? In…
A: Aggregate demand and aggregate supply model shows how is total demand and total supply determined…
Q: What is the long run aggregate supply curve?
A: The firms, and businesses tend to be the producer of goods, services, and other products in order to…
Q: What is the short run aggregate supply curve
A: The short run aggregate supply curve is an upward loping curve, because quantity supplied is…
Q: If the economy’s labor force is increasing and also becoming more productive, what will happen to…
A: The whole supply of goods and services produced within an economy at a certain overall price in a…
Q: Graphically illustrate the long-run aggregate supply curve.
A: Long-run aggregate supply (LRAS) shows the total planned output when the price level changes. LRAS…
Q: Graphically illustrate the long-run aggregate supply curve. Explain
A: In the long run, the aggregate supply curve is assumed to be vertical that is it does not change…
Q: Briefly explain with a graph whether given statement is true or false. “An adverse supply shock…
A: The statement given in the question is true. This is explained with the assistance of the diagram:
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 120 and…
A: Hi, Thank you for the question. We will answer the first three subparts as we can answer only 3…
Q: Illustrate each of the following situations with a graph showing the Short-run Aggregate Supply…
A: The aggregate supply is the summation of all the individual supply curves in the economy. The…
Q: What are the major factors that determine investment, and what impact does each have on aggregate…
A: In economics investment is defined as the expenditure done to acquire new capitals like new…
Q: What are the major factors that determine investment, and what impact does each have on aggregate…
A: Investment refers to the economic activity under which households and firms make an agreement or…
Q: What shape is the long-run aggregate supply curve? Why does it have this shape?
A: An economy attains equilibrium when aggregate demand is equal to the aggregate supply.
Q: The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve…
A: If the bout of severe weather increases the agriculture cost, cost of transporting and cost of…
Q: Illustrate each of the following situations with a graph showing the Short-run Aggregate Supply…
A: Hello, thanks for the question. Since you have posted many subparts here, only the first three…
Q: From March 2009 to 2013, the U.S. stock market more than doubled in value. How might this have…
A: When the U.S stock market more than doubled in value from March 2009 to 2013, this leads to more…
Q: From March 2009 to 2013, the U.S. stock market more than doubled in value. How might this have…
A: The demand of the entire economy would be the entire aggregate demand of the goods and services. The…
Q: Explain why the Aggregate Supply curve is upward sloping
A: In Macroeconomics, the concept of aggregate supply(AS) and aggregate demand(AD) is used to ascertain…
Q: Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…
A: Here, with the stock market boom, the consumers/households become wealthier and starts consuming…
Q: Explain why aggregate demand curve is downward sloping.
A: Answer to the question is as follows :
Q: Discuss the various factors affect aggregate supply curve shift.
A: The aggregate supply curve is one of the most determinant of the determination of the output or the…
Q: Use the following graph to answer the next question. In the figure, AD1 and AS1 represent the…
A: It shows expansion because actual real GDP is greater than potential real GDP. When AD1 rises to…
Q: Briefly discuss what consumer and business confidence in the economy typically reflects and provide…
A: The demand patterns of consumers are profoundly affected by changes in the economic environment.…
Q: Explain why the Aggregate Demand curve is downward sloping
A: Aggregate demand curve is demand for finished products (goods and services) in an economy at a…
Q: Why does the effect of a given increase in aggregate demand have a larger effect on real output in…
A: Answer: Introduction: In the short run, the output can be increased by employing more laborers. In…
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 120 and…
A: Market is in equilibrium at the point where the aggregate demand curve is intersects with the…
Q: What are the major factors that will affect short-run aggregate supply and long-run aggregate…
A: The short-run aggregate supply shifts in relevance changes in index and production. The equation…
Q: Use the dynamic model of aggregate demand and supply to illustrate a situation where the economy is…
A: The AD-As model implies inflation may arise due to shifting in the Aggregate demand curve on the…
Q: 11. Complete the following sentence: In terms of the AD-AS model, a decrease in the interest rate…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: There are three reasons the aggregate demand curve is downward sloping. What are they? Explain each…
A: Three reasons that show the Aggregate Demand curve is downward sloping: 1- Pigou's wealth effect. It…
Q: If the price level rises, what will happen to aggregate supply curve? It will shift outward. It…
A: If the price level rises, what will happen to aggregate supply curve
Q: The following graph shows the short-run and long-run aggregate supply curves (SRAS and LRAS) for an…
A: Shock can be defined as a change which can bring a shift in the aggregate demand or short-run…
Q: Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…
A: In an economy, aggregate demand is the sum of the demand made by the consumers, businesses, and…
Q: .Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…
A: Aggregate demand: Aggregate demand (AD) is the sum total of demand that is derived in an economy…
Q: The following graph shows the economy in long-run equilibrium at the expected price level of 120 and…
A: Aggregate demand refers to the expected amount received from the market from the sales proceedings…
Q: How is the aggregate supply curve different from the supply curve for a single good, like pizza?
A: The individual supply (SS) curve for a single good like pizza, shows the quantity of pizza that a…
Q: Q3: b) Briefly explain the money market and product market equilibrium. d) How do changes in…
A: In Keynesian macroeconomics, the change in aggregate demand is able to change the output level and…
Q: What causes the aggregate supply curve to have an upward slope in the short run, but a vertical…
A: Total supply of goods and services produced at a given price in a given period of time within an…
Q: What causes the aggregate supply curve to have an upward slope in the short run, but a vertical…
A: Aggregate supply curve reveals the total quantity of output that will be produced and sold at…
Q: Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…
A: Goods market is a market where the trade of final services and commodities takes place. In this…
Q: Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…
A: An Aggregate Demand curve shows the relationship between price level and real GDP/output Aggregate…
Q: Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…
A: The negative slope of the AD curve can be explained by three effects - PIGOU's EFFECT, Interest-rate…
Q: The following graph shows a hypothetical economy that uses the dollar as its currency. The economy…
A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…
Q: The following questions relate to long-run macroeconomic equilibrium and the stock market boom.…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following questions relate to long-run macroeconomic equilibrium and the stock market boom.…
A: Stock-market boom increases the income and wealth of the people and cause increase in the…
Q: Suppose that aggregate supply curve is shifting to the right by 2.5 percent a year. If aggregate…
A: The whole offer of products and services created within an economy at a precise overall worth in a…
Q: Draw the aggregate demand and aggregate supply curves and explain the following macroeconomics…
A: The economies around the globe have various entities, which operates with the motive of maximizing…
Q: Which of the following both shift the aggregate demand curve to the right? Group of…
A: Aggregate demand curve is a downward sloping curve indicating the negative relationship between the…
Q: Illustrate each of the following situations with a graph showing AS and AD curves, and explain what…
A: As per the honor code, we are allowed to attempt only first three sub-parts of the question. If you…
Q: 13.8 For each of the following scenarios, choose whether the short-run aggregate supply (SRAS) curve…
A: SRAS curve represents aggregate supply at various price levels in the economy.