Why long-run aggregate supply curve is vertical.

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Answer 1

Question

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

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3) Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the long- run aggregate supply curve is vertical and why the short-run supply curve is upward sloping? Explain in detail.

The economy is in long run equilibrium. Congress’s passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply aggregate supply in short run? And what happens in long run, and long run equilibrium price level and output? Explicitly state what happens to equilibrium price level and output in both short run and long run and how economy corrects from short run to long run.

42. Suppose that there is a temporary fall in aggregate supply due to a drought. Whathappens in the long-run?(A) Higher prices cause permanent tensions, leading long-run aggregate supply to shiftleft, resulting in a lower natural rate of output.(B) Over time, as the drought conditions fade, aggregate supply rises and returns tothe original natural rate of output.(C) Aggregate demand shifts right, so that prices are higher but long-run output isunchanged.(D) If the person you’re dating enjoys Taylor Swift, dump them immediately

Answer 2

Question

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Expert Solution & Answer

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Answer 3

Question

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Answer 6

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Answer 7

Chapter 20.4, Problem 4QQ

Sub part (a):

To determine

Why long-run aggregate supply curve is vertical.

Answer 8

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Answer 9

Sub part (b):

To determine

Why short-run aggregate supply curve is slope upward.

Answer 10

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Answer 11

Sub part (c):

To determine

Variable that shifts the long â€“run and short -run supply curve.

Answer 12

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Answer 13

Sub part (d):

To determine

Variable that shifts the short -run supply curve.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 20.1 - Prob. 1QQ Ch. 20.2 - Prob. 2QQ Ch. 20.3 - Prob. 3QQ Ch. 20.4 - Prob. 4QQ Ch. 20.5 - Prob. 5QQ Ch. 20 - Prob. 1QR Ch. 20 - Prob. 2QR Ch. 20 - Prob. 3QR Ch. 20 - Prob. 4QR Ch. 20 - Prob. 5QR

Why long-run aggregate supply curve is vertical.

Why long-run aggregate supply curve is vertical.

Why short-run aggregate supply curve is slope upward.

Variable that shifts the long â€“run and short -run supply curve.

Variable that shifts the short -run supply curve.

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Chapter 20 Solutions