What causes the aggregate supply curve to have an upward slope in the short run, but a vertical slope in the long run?

Q: A new batch of college graduates enter the workforce boosting the labor productivity of corpor…

A: Aggregate demand is the total spending on domestically made goods and services in an economy.…

Q: Explain why the aggregate demand curve slopes downwardand the short-run aggregate supply curve…

A: Why the aggregate demand curve slopes downward? The aggregate demand (AD) curve slopes downward…

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: Explain how the aggregate demand curve is derived.

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

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: 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: Which of the following causes the short-run aggregate supply curve to slope upwards? a) Wealth…

A: A temporary change in price level brought changes in the decision of what to be sold in the market.…

Q: Explain whether each of the following events shifts the short-run aggregate supply curve, the…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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 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: Explain whether each of the following events will increase, decrease, or have no effect on long run…

A: During long-run time intervals every factor can be changed and the factors in the long-run time…

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 might shift the aggregate-supply curve to the left? And explain why long run aggregate supply…

A: The AD or AS model is a macroeconomic model that describes how total supply and total demand…

Q: Recently Bangladesh saw an increase in oil prices. How do you think this will affect the aggregate…

A: Oil is an important factor in production and transportation.

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: Using the line drawing tool, show the effect on the aggregate demand curve, and label your new…

A: Aggregate demand refers to the collective demand for goods and services in an economy. It has a…

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: 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: 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: 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 are the major factors that determine investment, and what impact does each have on aggregate…

A: Investment refers to the economic activity under which households and firms make an agreement or…

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: Changes in what four variables will shift the long run aggregate supply curve?

A: (Q) Changes in what four variables will shift the long run aggregate supply curve?

Q: There are three distinct reasons why the aggregate demand curve slopes downward.  List and discuss…

A: The aggregate demand is the total demand for goods and services in an economy. It is downward…

Q: What are the major factors that will affect short-run aggregate supply and long-run aggregate…

A: The short-run aggregate supply shifts in relevance changes in index and production. The equation…

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: Why does the short-run aggregate supply curve slope upward to the right? If the prices of both (a)…

A: Aggregate supply is the total amount of services and commodities that firms in an economic plan to…

Q: Explain why the Aggregate Supply curve is upward sloping

A: In Macroeconomics, the concept of aggregate supply(AS) and aggregate demand(AD) is used to ascertain…

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: If aggregate supply is vertical, what role does aggregate demand play in determining output? In…

A: Aggregate supply describes, for each given price level the quantity of output firms is ready to…

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…

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…