When does a Short-Run Aggregate Supply curve shift upwards and why?

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: Show and explain the effects of an increase in aggregate demand in the long-run and short-run by…

A: AS/AD model depicts the the total supply and total demand interaction at macro level. Aggregate…

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: Distinguish between the short-run aggregate supply curve and the long-run aggregate supply curve.

A: The aggregate supply is the summation of all the goods and services produced and supplied by all 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: 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: Please explain why the long-run aggregate supply curve is vertical. What variable causes the…

A: Long run Aggregate supply curve important in finding the long run equilibrium of an economy.

Q: Use the dynamic model of aggregate demand and supply to illustrate a situation where the economy is…

A: The AD-As model implies inflation may arise due to shifting in the Aggregate demand curve on the…

Q: What would happen to short- and long-run aggregate supply if unusually good weather led to bumper…

A: To determine the impacts on the short run aggregate supply and the long run aggregate supply if…

Q: What factors affect aggregate demand?

A: Aggregate demand sums the desired quantity demanded of final commodities and services by different…

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: 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: How did the decline in U.S. home prices in 2006–2008 affect aggregate demand?

A: In year 2006-2008, there a large decline in the U.S. home prices which has a negative impact on the…

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: How does the policy rate hitting a floor of zero lead toan upward-sloping aggregate demand curve?

A: The policy rate hitting a floor of zero leads to an upward-sloping aggregate demand curve due to the…

Q: Why can't an economy generate its own aggregate demand when needed?

A: A system for creating, distributing, and consuming goods is referred to as an economy. The producers…

Q: what is aggregate demand and what are its advantages and disadvantages within a company?

A: Aggregate Demand is the relationship between the quantity of output demanded and the aggregate price…

Q: Briefly explain what effect and why, a slowdown in Technological progress would have on the…

A: A slow down in technological progress would affect the aggregate supply as it is directly related to…

Q: Why is a period of stagflation part of the normal aftermath of a period of excessive aggregate…

A: Stagflation leads to high inflation combined with an increase in the unemployment and stagnant…

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: Use the AD/AS model to explain the likely short run impacts on US GDP and the aggregate price level.…

A:

Q: c) an increase in aggregate demand and an increase in long-run aggregate supply

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: the factors that can increase short-run aggregate supply?

A: Aggregate supply- It is the total supply of goods and services by an economy.Short-run aggregate…

Q: What are the major factors causing a shift in aggregate demand (inward or outward)?  What are the…

A: Answer: Aggregate demand: aggregate demand refers to the total demand for goods and services…

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: What are the major components of aggregate demand? How these components impact the Aggregate Demand?…

A: The total demand for finished products and services in an economy is referred to as aggregate…

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: what is being illustarted in a shift in aggregate demand from AD0 to AD2?

A: The aggregate demand curve is a representation of the total level of demand for output in an…

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: 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: Suppose that an economy wants to boost available labor hours in order to increase aggregate supply.…

A: In the classical model the short run aggregate supply is upward sloping. Shown in the graph below is…

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: What might shift the aggregate supply curve to the left?use the model of aggregate demand and…

A: The aggregate curve shift to the left due to: Fall in economy capital stock Rise in prices Decline…

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: Describe the concept of aggregate demand and aggregate supply?

A: Aggregate demand is the measure of the overall quantity of demand for all finished goods and…

Q: Explain why the long-run aggregate-supply curve isvertical.

A: LONG RUN AGGREGATE SUPPLY CURVE - long-run is a period when all the factors of productions can be…

Q: If the economy’s labor force is increasing and also becoming more productive, what will happen to…

A: The whole supply of goods and services produced within an economy at a certain overall price in a…

Q: Use the diagram below. If the economy is initially at point C, to which point will it move if there…

A: When aggregate demand increases it will shift right word