Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the short-run aggregate-supply curve slopes upward. What variables shift both the long-run and short-run aggregate-supply curve? What variable shifts the short-run aggregate-supply curve but not the long-run aggregate-supply curve ?

Question
Asked Nov 18, 2019
3 views

Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the short-run aggregate-supply curve slopes upward. What variables shift both the long-run and short-run aggregate-supply curve? What variable shifts the short-run aggregate-supply curve but not the long-run aggregate-supply curve ?

check_circle

Expert Answer

Step 1

Aggregate supply :

The aggregate supply refers to the total goods and services produ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: In doing this problem, it helps to remember a few rule about exponents. The first rule is that, for ...

A: (a) If the capital and the labor increased by k times. The production function can be derived as fol...

question_answer

Q: Built-in Stability a.Explain the difference between discretionary and non-discretionary fiscal poli...

A: Click to see the answer

question_answer

Q: Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has...

A: Japanese government can make liquor tax reforms to increase the competition in the Japanese beer mar...

question_answer

Q: 6. The variables in the index of leading indicators are included in the index because Group of answe...

A: The reason for including variables of leading indicators in the index is the tendency to predict tur...

question_answer

Q: In what ways do future generations benefit from this generation’s deficit spending?  Cite three exam...

A: Public deficit: It refers to the situation in which government expenditure exceeds its revenue gener...

question_answer

Q: Make the case for restricting international trade.

A: Countries place restrictions on international trade due to politics related to economics. Even thoug...

question_answer

Q: Earlier this year it was reported that the supply of avocados(鳄梨) has fallen because of weather cond...

A: (1) The information needed about the market for avocado is given below.The weather condition in the ...

question_answer

Q: Use a graph to demonstrate the scenario where a competitive firm would be earning positive profit in...

A: 1) The firm produces at a price where the industry’s supply is equal to its demand at point e and pr...

question_answer

Q: 5. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500 000 p...

A: a.Opportunity cost is the value of the next best alternative that we foregone while making a decisio...