(a) To write: An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

Question

Draw lines for the long-run aggregate supply curve. Explain its shape and what can cause it to move in a few sentences. b. Now add in the short run aggregate supply curve. What explains its shape and what can cause it to move? c. On a new diagram, draw the aggregate demand curve. Explain its shape and what can cause it to shift. d. Why do we have short- and long-run supply curves but only one (ie not short or long-run) demand curve?

Answer 1

Question

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

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Draw lines for the long-run aggregate supply curve. Explain its shape and what can cause it to move in a few sentences. b. Now add in the short run aggregate supply curve. What explains its shape and what can cause it to move? c. On a new diagram, draw the aggregate demand curve. Explain its shape and what can cause it to shift. d. Why do we have short- and long-run supply curves but only one (ie not short or long-run) demand curve?

What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output. Assume all other things remain constant.a. A widespread fear of depression on the part of consumers.b. A $2 increase in the excise tax on a pack of cigarettes.c. A reduction in interest rates at each price level.d. A major increase in Federal spending for health care.e. The expectation of rapid inflation.f. The complete disintegration of OPEC, causing oil prices to fall by one-half.g. A 10 percent reduction in personal income tax rates.h. A sizable increase in labor productivity (with no change in nominal wages).i. A 12 percent increase in nominal wages (with no change in productivity).j. Depreciation in the international value of the dollar.

Are there many short-run aggregate supply curves and long-run aggregate supply curves? Why or Why not?

Answer 2

Question

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

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Answer 3

Question

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

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Answer 4

Question

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Answer 6

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

Answer 7

Chapter 8, Problem 7E

To determine

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

Answer 8

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Answer 9

To determine

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 21

Ch. 8 - Prob. 1E Ch. 8 - Prob. 2E Ch. 8 - Prob. 3E Ch. 8 - Prob. 4E Ch. 8 - Prob. 5E Ch. 8 - Prob. 6E Ch. 8 - Prob. 7E Ch. 8 - Prob. 8E Ch. 8 - Prob. 9E Ch. 8 - Prob. 10E

(a) To write: An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

Solution Summary: The author explains the shape of the short-run aggregate supply curve which gets steeper as real GDP rises with illustration.

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Chapter 8 Solutions

(a) To write: An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

Solution Summary: The author explains the shape of the short-run aggregate supply curve which gets steeper as real GDP rises with illustration.

(a) To write: An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

(b) To write: The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.

Chapter 8 Solutions

(a)

To write:

An explanation for the shape of the short run aggregate supply curve which gets steeper as real GDP rises with illustration.

(b)

To write:

The relationship between the short-run aggregate supply curve and long-run supply curve with the help of a diagram.