If the economy’s labor force is increasing and also becoming more productive, what will happen to the aggregate supply curve?

Q: Why unemployment results when Aggregate Demand is lesser than Aggregate Supply in the economy?

A: Aggregate demand refers to the total demand for the finished goods and services in an economy—the…

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: 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: How was the aggregate supply curve different from the supply curve for single good like pizza?

A: Aggregate supply curve shows the response of the aggregate supply to the fluctuations in the price…

Q: What happens to the output and price level if aggregate demand and aggregate supply curves shift in…

A: The aggregate demand and aggregate supply curve is a model that shows what decides total supply or…

Q: The following graph shows the short-run aggregate supply (SRAS) curve and the long-run aggregate…

A: Here the supply curve is the curve depicting how much production of manufacturing goods is being…

Q: One of your classmates is convinced that the actual amount of output that corresponds to the…

A: The fixed LRAS corresponds to the the natural level of output, which the economy can produce at…

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: 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: 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: Which of the following would shift the aggregate demand curve to the left?

A: Change in consumption, investment, government expenditure and net export will cause shifts in…

Q: What change does recession has on the price and output level when the change in aggregate demand is…

A: Recession: It is an economic situation or a phase of the business cycle in which the economy…

Q: If potential GDP increases, what happens to aggregate supply? Does the LAS curve shift or is there a…

A: Long run aggregate supply is vertical at potential GDP, that is at full employment.

Q: What are three factors that help explain the slope of the aggregate demand curve? What is the most…

A: The slope of the Aggregate Demand curve is downward sloping. The three reasons include: 1-Pigou…

Q: Which of the following is a major influence on Aggregate Supply? Select one: a. The advice of…

A: Aggregate supply (AS) is the total supply of the goods and services available into the market from…

Q: Give three reasons why the aggregate demand curve slopes downward.

A: Answer - Reasons for AD curve to be sloping downward:- 1. Wealth effect:- According to this money…

Q: How does an increase in aggregate demand affect output, unemployment, and the price level in the…

A: AD(aggregate demand) curve, shifts to the right(increases) when its components rise. The components…

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: What change does recession has on the price and output level when the change in aggregate demand is…

A: Recession: It is an economic situation or a phase of the business cycle in which the economy…

Q: aggregate supply

A: Out of the two, short term aggregate supply is more realistic and reflects the actual scenario of…

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: What are 3 ways in which aggregate supply could decrease in an economy?

A: AGGREGATE SUPPLY Aggregate supply is cumulative of goods and services produced in an economy in a…

Q: (Changes in Aggregate Supply) List three factors that can change the economy’s potential output.…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

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: In an economy the aggregate demand is less than aggregate supply explain the changes that will take…

A: For the GDP to increase, aggregate demand should be increasing. When aggregate demand is less than…

Q: n the short run, a favorable shift in aggregate supply would move the economy from: A to B D to A B…

A: Answer to the question is as follows :

Q: Why does the economy's aggregate demand curve have a negative slope?

A: Three reasons that show the Aggregate Demand curve is downward sloping (or have a negative slope):…

Q: What factors shift the short-run aggregate supply curve?Do any of these factors shift the long-run…

A: Aggregate supply refers to the total supply of services and goods that is planned to be supplied in…

Q: Explain the three reasons the aggregate-demand curve slopes downward. Give an example of an event…

A: The curve that depicts total quantity of  goods and services demanded at given different price…

Q: Last week, Jerome Powell, the chair of the Federal Reserve, commented that the economy will face a…

A: A recession is an economic period where the overall output in the economy falls due to a fall in the…