The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. The horizontal axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following? The amount of a particular representative good produced in the economy The price of a particular representative good produced in the economy An economy's price level An economy's real GDP Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply. As the price level rises, firms pay higher wages for workers. O As the price level rises, firms find it more profitable to hire workers at any given wage. O As the price level rises, firms expand their production because they can sell their output for more money.
The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. The horizontal axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following? The amount of a particular representative good produced in the economy The price of a particular representative good produced in the economy An economy's price level An economy's real GDP Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply. As the price level rises, firms pay higher wages for workers. O As the price level rises, firms find it more profitable to hire workers at any given wage. O As the price level rises, firms expand their production because they can sell their output for more money.
Chapter20: Aggregate Demand And Supply
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic
activity around its long-run trend.
The horizontal axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following?
The amount of a particular representative good produced in the economy
The price of a particular representative good produced in the economy
An economy's price level
An economy's real GDP
Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply.
As the price level rises, firms pay higher wages for workers.
O As the price level rises, firms find it more profitable to hire workers at any given wage.
O As the price level rises, firms expand their production because they can sell their output for more money.
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