The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why are there two versions of the AS curve( i.e. short run and long- run). Discuss.
Q: 2. Suppose that the economy is in a long-run equilibrium. a. Use a diagram to illustrate the state…
A: Long run equilibrium occurs at the point where the short run supply curve, long run supply curve and…
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A: Classical economics developed around 1750. Classical economics believed that supply creates its own…
Q: 5. The aggregate supply curve is shifted rightward by an increase in tax rates. Answer: Reason:
A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…
Q: 6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…
A: Introduction The reason behind the upward sloping of the aggregate supply curve is sticky price. The…
Q: 31. Which of the following shifts the aggregate supply curve? an increase in the price of oil b. C.…
A: In an economy, aggregate supply curve is the curve that depicts the overall production of output…
Q: Why is the aggregate supply curve completely vertical in the long run? A. Short-run business cycles…
A: Aggregate supply curve shows different combinations of price and output supplied in the economy.
Q: 12. Explain whether each of the following events shifts the short-run aggregate-supply curve, the…
A: (a) Savings of the household is the excess disposable income with them remaining after the…
Q: 5. Shifts in the Aggregate Supply Curves a. List and discuss the things that will make the Short Run…
A: At each price level, the aggregate supply curve depicts the entire amount of production and real GDP…
Q: how do i exlpain this and im i doing a graph?
A: To show the effect of a decline in wealth in the short-run and the long-run using the aggregate…
Q: QUESTION 4 The shape of the short-run aggregate supply curve is: O upward sloping, because wages…
A: Supply is the relationship between the price of the commodity and the willingness of the producer to…
Q: 5. What is the level of Potential GDP in Spain? 6. What is the size of real GDP in the short run…
A: The total monetary or market worth of all finished goods and services produced inside a country's…
Q: 11. Explain why the following statements are false. A.) “The aggregate-demand curve slopes downward…
A: A. The demand in the economy comes from mainly the household sector, the business sector, the…
Q: Question 4 Suppose the U.S. economy can be described by an IS Curve with b = 1/6. In addition,…
A: Answer in Step 2
Q: 12. Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves,…
A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…
Q: 5) Which of the following is TRUE about the long-run aggregate supply curve? A) It is vertical at…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. Which of the following will shift the Aggregate Demand curve to the left? (Select All that Apply)
A: Aggregate demand is the total demand for final goods and services produced domestically. Aggregate…
Q: 8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…
A: The aggregate demand (AD) shows the negative relation between the quantity demand and price level.…
Q: The short-term aggregate supply curve is the relationship between the amount of real GDP supplied…
A: Since you have posted multiple questions. But according to answering guideline, we are supposed to…
Q: 6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…
A:
Q: 1. In the following table, determine how each event likely effects potential output (a.k.a.,…
A: LRAS shows the connection between (P)price level & real GDP that would be supplied if all P were…
Q: 1. For each of the statement below determine if it shifts the aggregate demand or short-run…
A: A shift in AS can be credited to numerous factors, remembering changes for the size and quality of…
Q: 3.Explain the causes of shifting of aggregate demand and aggregate supply.
A: The aggregate demand curve can shift because of the following reasons: Increase or decrease in…
Q: 4. Show and explain the Keynesian and classical aggregate supply curves graphically. How does the…
A: Answer: Introduction: Aggregate supply curve: it shows the relationship between the amount of output…
Q: Aggregate Demand and Aggregate Supply (AD-AS) Model (Chapter 13) 5.1 Why does the short-run…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Answer the attached question
A: The classical economics includes the short-run aggregate supply curve and long-run aggregate supply…
Q: 1. What is the difference between the long-term aggregate supply and the short term supply? (also…
A: The amount of a certain product or service that suppliers are willing to offer to consumers at a…
Q: how do i explain these answers
A: The monopoly is a market structure which is characterized by the presence of a single seller in the…
Q: Answer the attached question
A: The law of demand: It refers to the inverse or negative relationship between quantity demanded and…
Q: 3. Suppose an economy is in long run equilibrium. 3.1 use the model of aggregate demand and…
A: When market supply and demand are balanced, stable prices are the result. When there is an overflow…
Q: 2. Use the model of aggregate demand and short-run aggregate supply to explain how each of the…
A: Hi, thanks for the question. Since you posted question with multiple subparts, I will answer for the…
Q: how do i explain this
A: Before the change in the wealth of the people in the economy, the economy is in its long run…
Q: 23. Which of the following is not one of the five regions of the aggregate aggregate supply curve…
A: "Aggregate supply curve represents the total output produced that businesses produce and sell at…
Q: B. Using aggregate demand and aggregate supply curves, explain why NAIRU is not in the vertical…
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Q: 17. () Suppose policymakers take actions that cause a contraction of aggregate demand. Which of the…
A: Meaning of contraction of demand: When the quantity demanded decreases due to a increase in the…
Q: 1. In the following table, determine how each event likely effects potential output (a.k.a.,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1) What effects might each of the following have on aggregate demand/aggregate supply? In each case…
A: AD-AS is a macroeconomic model, that shows the relationship between aggregate demand, aggregate…
Q: 4. Using the aggregate demand and supply model, demonstrate the effect of a $100 billion dollar open…
A: Open market operations by the government, involve, buying and selling of securities, in order to…
Q: 6. Suppose political turmoil causes a significant decrease in oil production in the middle east. How…
A: In the middle East economy, it is given that the production of oil decreases due to political…
Q: 6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…
A: Sticky-Wage Theory: the sticky wage theory exhibits that the wages of the laborer remain unchanged…
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- #17 The long-run aggregate supply curve shifts right if a technology advances. b the capital stock increases. c immigration from abroad increases. d All of the above are correct.16. Why is the aggregate supply curve completely vertical in the long run? A. Short-run business cycles do not affect short-run output. B. Aggregate supply is impossible to illustrate in the long run. C. A country’s total output will always be constant. D. A country’s total output is not affected by price in the long run.3) Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the long- run aggregate supply curve is vertical and why the short-run supply curve is upward sloping? Explain in detail.
- QUESTION 4 (a) Price can affect the aggregate supply curve (AS). Can you identify factors other than price that might affect the AS curve? (b) Much of the current labor force in Malaysia is from other countries such as Indonesia, Vietnam, India, and Philippines. What is the effect of these foreign workers on our local skills and expertise in respect to the job market?Aggregate demand and aggregate supply, based on a problem from “Principles of Economics” by N. Gregory Mankiw a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right.b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph.c) What will be the effect of such events on the level of prices and the real outcome in the longrun? Update your graph3. In Keynesian short run aggregate supply curve segment what happens to the price and income (GDP) if the aggregate demand curve shifts outward or inward and why
- Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the longrun aggregate supply curve is vertical and why the short-run supply curve is upward sloping? EXPLAIN IN DETAIL. ( (You do not have to draw the graphs in this question, but if you want, you can) TO MAKE EXPLANATION IS SO İMPORTANT.NOTE THAT: DESCRIPTION ≠ EXPLANATIONSuppose the government provides incentives (e.g. lower company tax) to firms that engage in high levels of research and development.How would this affect firms’ allocation between different types of investment? Explain. How would this affect the interest rate? Explain. What happens to the quantity of investment overall? Explain.What happens to the short-run aggregate supply curve? Explain. What happens to the long-run aggregate supply curve? Explain. What happens to the value of the dollar? Explain.g What happens to the quantity of net exports demanded? Explain.h What happens to aggregate demand? Explain.1 As more of the nation s systems of river locks 1. As more of the nation’s systems of river locks become deficient, what is happening to the pace at which the U.S. production possibilities curve shifts outward over time? 2. How are deficiencies in the U.S. river system affecting the extent to which the U.S. long-run aggregate supply come shifts rightward each year? 1 As more of the nation s systems of river locks
- Suppose that firms become very pessimistic about future business conditions and cut heavily on investment in capital equipment. Show the long-run equilibrium of the economy. Explain what happens to Price level and Quantity of Output in the long run equilibrium. Explain in words why the aggregate quantity of output demanded changes between the short run and the long run. [No policy involvement]1. In the following table, determine how each event likely effects potential output (a.k.a., long-run aggregate supply). Direction of Potential Output Shift Event Left Right No Shift The government allows more immigration of working-age adults. For environmental and safety reasons, the government requires that the country’s nuclear power plants be permanently shut down. An investment tax credit increases the rate at which firms acquire machinery and equipment. 2. In the following table, determine how each event affects the position of the aggregate demand curve. Direction of AD Curve Shift Event Left Right No Shift A decrease in consumer confidence (suggests people believe a contraction/recession coming) A decrease in individual income tax rates An increase in the value/price of housing 3. What effect would an increase in aggregate demand…1. In the following table, determine how each event likely effects potential output (a.k.a., long-run aggregate supply). Direction of Potential Output Shift Event Left Right No Shift The government allows more immigration of working-age adults. For environmental and safety reasons, the government requires that the country’s nuclear power plants be permanently shut down. An investment tax credit increases the rate at which firms acquire machinery and equipment. 2. In the following table, determine how each event affects the position of the aggregate demand curve. Direction of AD Curve Shift Event Left Right No Shift A decrease in consumer confidence (suggests people believe a contraction/recession coming) A decrease in individual income tax rates An increase in the value/price of housing 3. What effect would an increase in aggregate demand…
