Why long - run aggregate supply (AS) schedules are drawn vertically and short -run schedules are upward - sloping

Q: Explain why aggregate demand (AD) curve is negatively sloped by taking the link between the goods…

A: Goods market is a market where the trade of final services and commodities takes place. In this…

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: The following table lists several determinants of short-run aggregate supply. 4 Fill in the table by…

A: The curve that depicts various quantities of goods and services being supplied at various price…

Q: Distinguish between “real-balances effect” and “wealth effect,” as the terms are used in this…

A: Aggregate demand represents the total demand for all final goods and services that an economy…

Q: How, if at all, did these events affect the long-run aggregate supply (LRAS) curve? Note that some…

A: With time increase in the quantity and quality of physical capital, human capital, and technological…

Q: Consider the exhibit below for the following questions. If the economy is in long-run equilibrium,…

A: An adverse shock of supply-side is an event which tends to cause an unexpected increase in costs or…

Q: A recession will cause an economy's long-run aggregate supply curve to shift to the left. (Note:…

A: PLEASE NOTE AS PER THE DEMAND SOLVINF PART E ONLY.   A supply curve during the time of recession…

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: Which of the following shifts short-run, but not long-run aggregate supply right? Answer a decrease…

A: Answer: Correct option: decrease in the expected price level Explanation: If the suppliers or firms…

Q: Fill in the table by indicating the changes in the determinants necessary to decrease short-run…

A: The short run aggregate supply curve (SRAS) represents the relationship between the price level and…

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: LRAS SRAS, SRAS, R AD. AD, QUANTITY OF OUTPUT PRICE LEVEL

A: The long-run aggregate supply (LRAS) curve compares the amount of production provided by businesses…

Q: One of your classmates is convinced that the actual amount of output that corresponds to the…

A: The fixed LRAS corresponds to the the natural level of output, which the economy can produce at…

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 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: Aggregate Supply Curve may shift to right due to improvement in technology

A: An rise in technology causes all AS curve to move rightward. A reduction in technology causes all AS…

Q: What causes the aggregate supply curve to have an upward slope in the short run, but a vertical…

A: Total supply of goods and services produced at a given price in a given period of time within an…

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: What is the difference between an anticipated and an unanticipated increase in aggregate demand?…

A: The difference between an anticipated and an unanticipated increase in aggregate demand is that the…

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

A:

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: 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: Which of the following will cause a shift in the short-run aggregate supply curve? a.An increase in…

A: Aggregate demand is the composition of consumption, investment, government spending and net exports.…

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

A: In the long run, the aggregate supply curve is assumed to be vertical that is it does not change…

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: 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…

Q: Which of the following causes the short-run aggregate demand curve to slope downwards? a) Changes…

A: The demand curve slope downwards when there is a fall in the price level, there is a movement along…