Draw a short-run aggregate supply curve that gets steeper as real GDP rises. a. Explain why the curve has this shape. b. Now draw a long-run aggregate supply curve that intersects a short-run AS curve. What is the relationship between short-run AS and long-run AS?

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter9: An Introduction To Basic Macroeconomic Markets
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Draw a short-run aggregate supply curve that gets steeper as real GDP rises.

a. Explain why the curve has this shape.

b. Now draw a long-run aggregate supply curve that intersects a short-run AS curve. What is the relationship between short-run AS and long-run AS?

 

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