Fluctuations in employment over the business cycle bring fluctuations in real gross domestic product (GDP). However, these changes in real GDP are fluctuations around potential GDP. It is not changes in potential GDP and long-run aggregate supply." In terms of the above statement examine the two main factors affecting the aggregate supply curve. Use a diagram to motivate your answer. QUES ON ONE"Fluctuations in employment over the business cycle bring fluctuations in real gross domesticproduct (GDP). However, these changes in real GDP are fluctuations around potential GDP.It is not changes in potential GDP and long-run aggregate supply."In terms of the above statement examine the two main factors affecting the aggregate supplycurve. Use a diagram to motivate your answer.

Aggregate supply in the economy is identified as the total amount of goods and services that…

Answered: QUESTION ONE "Fluctuations in…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 18E

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Fluctuations in employment over the business cycle bring fluctuations in real gross domestic product (GDP). However, these changes in real GDP are fluctuations around potential GDP. It is not changes in potential GDP and long-run aggregate supply." In terms of the above statement examine the two main factors affecting the aggregate supply curve. Use a diagram to motivate your answer.

QUES ON ONE
"Fluctuations in employment over the business cycle bring fluctuations in real gross domestic
product (GDP). However, these changes in real GDP are fluctuations around potential GDP.
It is not changes in potential GDP and long-run aggregate supply."
In terms of the above statement examine the two main factors affecting the aggregate supply
curve. Use a diagram to motivate your answer.

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