List and describe the factors that determined the aggregate supply curve in the short and long run and what causes it to shift. If you were running your own firm (you may use an example to illustrate), how might its individual supply curve differ from the aggregate curves?

All of 5.2 and 5.3 please. I don’t really know how to explain nor how to show.

What is the difference between the long run and short run aggregate supply curve?   the long run aggregate supply curve is downward sloping, while the short run is vertical.    the long run aggregate supply curve is vertical and represents potential GDP, while the short run curve slopes upward.    the short run aggregate supply curve represents potential GDP level, while the long run represents current GDP.   the long run aggregate supply curve is above the short run aggregate supply curve.

what impact would a change that shift an economys production possibilities curve outward have on the long run aggregate supply curve?

Unlike the Suez Canal, the Panama Canal is highly relevant for the US economy. A blockage of the Panama Canal could produce severe supply disruptions for the US economy. Suppose there is a severe blockage of the Panama Canal that last for six weeks. The following questions consider how such a blockage of the Panama Canal would affect the US economy in the short-run. Which of the following statements describes how a blockage of the Panama Canal would affect the US economy in the short run?        A) The price level would increases and real GDP would rise above its natural level.       B) The price level would decrease and real GDP would rise above its natural level.       C) The price level would decrease and real GDP would fall below its natural level.       D) The price level would increase and real GDP would fall below its natural level

(a) Suppose the natural rate of unemployment for the economy is 5 percent and the economy is currently experiencing an 8 percent unemployment rate. Explain what will likely happen to wages and prices as the economy adjusts to the long-run equilibrium.   (b)    Using the information below, explain the adjustments that will be taken by firms and workers to move the economy to a long-run equilibrium, specifically in terms of costs of production, real and nominal wages, and prices of products. Assume that firms and workers have adaptive expectations. The current unemployment rate = 4%. The natural rate of unemployment = 5%. Last year's inflation rate = 2%. This year's inflation rate = 3%.   (c) The workers in the oil and gas industry in Alberta are paid an average of $68.50 per hour, and through their collective bargaining agreement, they have incorporated a 3.5 percent annual raise in their contracts to account for anticipated inflation. Suppose there is unexpected inflation of 2.8%…

Explain why demand policies can only reduce unemployment below the natural rate in the short-run.

In order to mitigate the economic impacts of the COVID-19 recession, the Government plans to run large budget deficits to improve infrastructure and build more public and transitional houses in New Zealand.   Briefly describe the impact of this budget plan (with everything else held constant) on the following variables in the short run.  (a) aggregate demand; (b) the price level; (c) the supply of loanable funds; (d) the real interest rate; (e) the relative attractiveness of NZD-denominated assets; (f) net foreign investment; (g) the exchange rate of the NZ dollar; (h) NZ exports (i) NZ imports; (j) the value of NZ net exports.

The uncertainty surrounding the COVID-19 pandemic led firms to reduce their desired investment in 2020. What are the short-run and long run effects on the equilibrium price and output levels? Please explain  in words.

For each of the following economic events, analyze the short-run and long-run transitions of the economy without and with government intervention. For each question, start from the initial long run equilibrium, point A. G point D, point C point E, point B SRAS Q10. There is a sudden decrease in oil price. Without government intervention, this would move the economy from point A to in the long run in the short run, then to point G, point A point G, point B AD₂