What is the shape of the aggregate supply curve in the long run and in the short run? Explain the reasons why they are shaped that way.

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: What stage in the business cycle does the shift in Aggregate Demand represent?

A: Aggregate demand refers to the total expenditure that all the sectors of the economy are planning to…

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

A: When there is a reduction in household income tax, there is an increase in income for consumption…

Q: What effects would each of the following have on aggregate demand or aggregate supply? In each case…

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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: 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: 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: Graphically illustrate the long-run aggregate supply curve.

A: Long-run aggregate supply (LRAS) shows the total planned output when the price level changes. LRAS…

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: Illustrate and interpretshifts in the short-runand long-run aggregate supply curves.

A: The aggregate supply (AS) curve indicates the total real GDP or quantity of output that firms can…

Q: Q2. Explain whether each of the following events will increase, decrease or have no effect on…

A: The long-run aggregate supply signifies the level of real output that an economy can develop by…

Q: Draw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply. Be…

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Q: What three factors affect long-run aggregate supply? ​A. Natural Resources, Technology, and…

A: In the long run there are three factors that affect aggregate supply.

Q: what impact would a change that shift an economys production possibilities curve outward have on the…

A: Outward production possibility curve would increase efficiency.

Q: a.What happens to the aggregate demand? Describe your answer. b.What happens to the level of output?…

A: The aggregate demand curve shows the amount of goods and services that the economy is willing and…

Q: Illustrate each of the following situations with a graph showing the Short-run Aggregate Supply…

A: The aggregate supply is the summation of all the individual supply curves in the economy. The…

Q: what is the importance of aggregate demand?

A: Aggregate Demand refer to the sum total of income that the seller or producer expect from the sales…

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: 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 relationship does the short-run aggregate supply curve represent?

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Q: How does the economy return to equilibrium in response to changes in aggregate demand (AD) and…

A: When there is a change in the market equilibrium, for example a sudden change in the oil prices,…

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: Create a graph for a short-run aggregate supply curve. Use the variable ‘Price Level’ for the…

A: The supply curve represents graphically the supply schedule and it illustrates when there is an…

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: Are there many short-run aggregate supply curves and long-run aggregate supply curves? Why or Why…

A: The short run aggregate supply curves would be an upward sloping line which shows the increase in…

Q: Discuss how the economy returns to equilibrium in response to changes in aggregate demand (AD) and…

A: Equilibrium: It means a state in which economic forces are balanced.

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

A: Aggregate demand and aggregate supply model shows how is total demand and total supply determined…

Q: Draw the aggregate demand, short run aggregate supply and the long run aggregate supply.

A: Aggregate demand: It represents the total of all consumption-related demands for goods and services…

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: 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: 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: Which of the following would not cause a shift in the long-run aggregate supply curve? a) An…

A: Answer - Need to find- Which of the following would not cause a shift in the long-run aggregate…

Q: Along the long-run aggregate supply curve, the level of Real GDP supplied with increases in the…

A: The aggregate supply curve is an upward sloping curve that shows the relationship between the level…

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 assumptions cause the immediate-short-run aggregate supply curve to be horizontal? Why is the…

A: Aggregate supply: It is the sum total of the final value of all the goods and services that have…

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: Starting with long run equilibrium, use the aggregate demand and aggregate supply model to…

A: The aggregation of supply curve of all the firms in the economy is known as the aggregate supply…

Q: Illustrate each of the following situations with a graph showing the Short-run Aggregate Supply…

A: Hello, thanks for the question. Since you have posted many subparts here, only the first three…

Q: Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the…

A: The supply curve is a visual illustration of the association between the expense of a product or…