why the short run aggregate supply curve has a positive slope and the long run supply curve a vertical line

Q: Indicate whether the descriptions that follow are short-run aggregate supply curves, long-run…

A: Short-run aggregate supply curve:- The amount of overall production that will be generated at each…

Q: A decrease in the expected price level shifts   only the long-run aggregate supply curve right. only…

A: The long run aggregate supply curve is a vertical line representing the potential GDP level, which…

Q: Q2. Explain whether each of the following events will increase, decrease or have no effect on…

A: 1)c) TNB investing in new electricity transmission would have an impact on long-run aggregate supply…

Q: Identify the three ranges of the aggregate supply curve. explain the impact of an increase in the…

A: Aggregate supply is the output flow in an economy based on the change in productions in the economy…

Q: If Germany were to pass legislation that would make it easier for people to emigrate to Germany,…

A: The immigration policy would help more people to move into Germany. Hence, there would be an…

Q: the difference between the short-run aggregate supply curve and the long-run aggregate supply.

A: ANSWER   the difference between the short-run aggregate supply curve and the long-run aggregate…

Q: True or false The aggregate supply curve is vertical in the long run at the full-employment level…

A: According to the given question Answer is TRUE

Q: terms of the aggregate supply curve, which of the following statements is true?   Question 37…

A: Short run aggregate supply curve is always upward sloping because nominal wages are sticky and there…

Q: The table shows the aggregate demand and short-run aggregate supply schedules of Chamber Island in…

A: The potential GDP is at $510  billion. This implies that equilibrium price is $110.  When exports…

Q: What would be the effect of an unexpected increase in the price of oil on a graph showing aggregate…

A: In an economy, aggregate demand and aggregate supply curves are the graphical representation of the…

Q: In the long run, the aggregate supply curve: Slopes upward and to the right Slopes downward and to…

A: Aggregate supply refers to the total supply of goods and services in an economy over a given period,…

Q: This will result in which of the following? to A shift the long-run aggregate supply curve to the…

A: The LRAS is a curve that shows the relationship b/w price(P) level and real GDP. This curve runs on…

Q: The effects of a higher than expected price level are shown by   shifting the short-run aggregate…

A: The prices that the firms expect to charge is called the expected price-level. Inflation can lead to…

Q: Select Correct and Explain why its correct: The multiplier model assumes that the: short-run…

A: According to Keynes, With the increase in investment there is multiple times increase in the income.…

Q: Q35 The positive relationship between short-run aggregate supply and the price level indicates…

A: Aggregate supply curve is related to price and output. As money wage rate increases, aggregate…

Q: Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: In 2013, the economy of Boonton had an aggregate demand and aggregate supply according to the…

A: Long-run equilibrium refers to the situation where the level of output is equal to the full…

Q: At full employment: O the aggregate demand curve is vertical O the long-run aggregate demand curve…

A: Long run market equilibrium or full employment level is a situation where long run aggregate supply…

Q: In the long run, the price level is determined by   a. the short-run aggregate supply curve and…

A: In the long run, the price level is determined by the short-run aggregate supply curve and the…

Q: In 2001, the economy of Boxtown had an aggregate demand and aggregate supply according to the…

A: Short-Run equilibrium is a situation where the price level is such that the quantity supplied must…

Q: The effects of a higher than expected price level are shown by Answer shifting the short-run…

A: Short run It is a period during some of the factor prices(specially labor) remains fixed by an…

Q: The long-run aggregate supply curve is... A) Upward sloping at the potential GDP level B) Vertical…

A: Aggregate supply curve shows combinations of price and quantity of output supplied in the economy.

Q: What effect will each shift have on price levels and quantities? Decrease in Aggregate Demand…

A: Aggregate demand shows the total quantity of goods and services demanded at different price levels.…

Q: reate a graph for a short-run aggregate supply curve. Use the variable ‘Price Level’ for the…

A: The supply curve graphically represents the supply schedule and it shows that if the price level…

Q: The long-run aggregate supply curve is upward-sloping and becomes steeper at output levels above…

A: Aggregate supply represents the total goods and services that producers produce and sell in the…

Q: se the model of aggregate demand and short-run aggregate supply to explain how each of the following…

A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…

Q: What is the shape of Aggregate Supply curve in the short run and the reasons of the particular shape…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: Which of the following are assumed to remain unchanged along a given short-run aggregate supply…

A: The aggregate supply curve depicts the quantity of real GDP that is supplied by the economy at…

Q: Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the…

A: Aggregate supply :The aggregate supply refers to the total goods and services produced in an economy…

Q: First the economy is on the point C. Explain the result of an increase in the money supply in the…

A: Aggregate demand and Aggregate Supply curves (both long run and short run) are important…

Q: A sudden crash in the stock market shifts a.the aggregate demand curve. b. the short-run aggregate…

A: Stock: Stocks are a type of money market instrument that is used in the economy. There will be…

Q: Create a graph with an aggregate demand curve and an aggregate supply curve in the short-run. Use…

A: The aggregate demand curve is a negatively sloped curve, which expresses the relationship between…

Q: Question 26 The effects of a higher than expected price level are shown by Answer shifting the…

A: Question 26: Supply refers to the relation between the price of the commodity and the willingness of…

Q: hifts in the Aggregate Supply Curves List and discuss the things that will make the Short Run…

A: Supply shocks are occasions that shift the aggregate supply curve. We characterized the AS bend as…

Q: When production costs rise, in the short run:       A.  the aggregate-supply curve shifts down to…

A: The aggregate supply (AS) the sum total amount of commodities and services produced in an economy at…

Q: Suppose the government passes a law that significantly increases the minimum wage. The policy will…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: Define aggregate supply? Build your argument by drawing Short-run aggregate supply curve. And what…

A: Aggregate Supply: It is the sum total of supply of goods and services that are planned to be sold…

Q: Price Level Prices for plastic, a key input in many industries, have decreased due to new technology…

A: Aggregate demand is a macroeconomic term that refers to the total demand for goods and services over…

Q: Draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is…

A: The economy is in short run equilibrium where aggregate demand intersects short run aggregate supply…

Q: Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the…

A: The supply curve is a visual illustration of the association between the expense of a product or…

Q: 3.   Currently, there is world-wide shortage of computer microchips. Determine the effects on: a.…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of these will shift the short-run aggregate supply curve to the right? an increase in the…

A: Short run Aggregate supply curve is an upward sloping curve, depicting positive relation between…