(a)
To Determine:
Fill in the blanks
Introduction:
Short-run
Long-run Aggregate Supply (Modern): It shows the relationship between total planned production and the price level in the long run, all other things held constant. It is a vertical sloping curve as in the long-run the economy cannot operate beyond the full employment.
(b)
Fill in the blanks
Introduction:
Short-run Aggregate Supply (Modern): It shows the relationship between total planned production and the price level in the short run, all other things held constant. It is an upward sloping curve due to the partial adjustment of prices.
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