Explain why the Aggregate Supply curve is upward sloping

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: Show and explain the effects of an increase in aggregate demand in the long-run and short-run by…

A: AS/AD model depicts the the total supply and total demand interaction at macro level. Aggregate…

Q: What is an effificiency wage? How might payment of an above-market wage reduce shirking by employees…

A: The efficiency wage theory suggests that the employees are paid more than the market wages to for…

Q: The federal government tends to increase their spending to get the economy out of recession. Explain…

A: Recession refers to the situation of slowdown in economic activities. During the recession, the…

Q: Why long - run aggregate supply (AS) schedules are drawn vertically and short -run schedules are…

A: In an economy, aggregate supply curve is used to express the total supply of output by all the…

Q: One reason the short-run aggregate supply curve is positively sloped is that lower price level…

A: According to the nominal wage rigidity model, in the short-run nominal wages do not change…

Q: Distinguish between “real-balances effect” and “wealth effect,” as the terms are used in this…

A: Aggregate demand represents the total demand for all final goods and services that an economy…

Q: Consider the exhibit below for the following questions. If the economy is in long-run equilibrium,…

A: An adverse shock of supply-side is an event which tends to cause an unexpected increase in costs or…

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: Explain how the aggregate demand curve is derived.

A: The aggregate demand shows the relationship between price level and quantity demanded. That is,…

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: Answer as True, False, or Uncertain, and explain your choice. The natural level of output can be…

A: The natural level of output is the output level that is consistent with the equilibrium point in the…

Q: Define the three ranges of the aggregate supply curve in the AD/AS framework

A: The aggregate supply curve refers to the total amount of goods and services a producer is willing to…

Q: The aggregate supply curve (short run) is upward-sloping because ______

A: The Aggregate Supply Curve shows relationship between price level and total supply in the economy.…

Q: What factors affect aggregate demand?

A: Aggregate demand sums the desired quantity demanded of final commodities and services by different…

Q: What determines aggregate supply in the short run and what determines it in the long run?

A: Aggregate supply refers to the whole quantity of products and services generated within an economy…

Q: Aggregate Supply Curve may shift to right due to improvement in technology

A: An rise in technology causes all AS curve to move rightward. A reduction in technology causes all AS…

Q: What happens to aggregate demand when transfer payments and the taxes to pay them both rise by the…

A:

Q: Why does the aggregate demand curve slope downward?

A: Aggregate demand curve shows the summation of consumption spending, investment spending, government…

Q: What are the major factors causing a shift in aggregate demand (inward or outward)?

A: Aggregate demand refers to the total demand for goods and services in the economy. AD = C + I + G +…

Q: List the three reasons for why the aggregate-demand curve slopes downward. Explain Answer

A: At each price level, an aggregate demand curve depicts total spending on domestic goods and…

Q: Briefly explain what effect and why, a slowdown in Technological progress would have on the…

A: A slow down in technological progress would affect the aggregate supply as it is directly related to…

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: What is the shape of the aggregate supply curve in the long run and in the short run? Explain the…

A: The AS {"aggregate supply"} is described as the total Q {"quantity"} of output that the firms will…

Q: Changes in short run aggregate supply can be caused by changes in? Explain?

A: The aggregate supply curve shows the relationship between the price level in the economy and the…

Q: When does a Short-Run Aggregate Supply curve shift upwards and why?

A: The Short Run Aggregate Supply curve allows us to capture how all the firms in the market respond to…

Q: What relationship does the short-run aggregate supply curve represent?

A:

Q: how the "wealth effect" causes the Aggregate Demand curve to be downward. how "sticky nominal wages"…

A: - Hello. Since your question has multiple parts, we will solve the first question for you. If you…

Q: Why the aggregate supply (AS) curve is relatively flat within the low ranges of aggregate output and…

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: Explain why the long-run aggregate-supply curve isvertical.

A: LONG RUN AGGREGATE SUPPLY CURVE - long-run is a period when all the factors of productions can be…

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…