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?

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Q: short-run equilibrium?

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A: Aggregate supply or total output is the total supply of services and goods being produced at a given…

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A: AD = C+I+G where C= C+cYd

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A: The situation shows that shift in Aggregate Demand above potential output LRAS, which result in…

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A: The short run aggregate supply slopes upwards while the long run supply curve is vertical. The long…

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A: The Aggregate Demand (AD) - Aggregate Supply (AS) explain the relationship between the total demand…

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A: Both PPC and LRAS curve reflect full capacity and resource utilization in the economy.

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A: D) The price level would increase and real GDP would fall below its natural level

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A: Short-run equilibrium in an economy occurs at the intersection of SRAS and AD curves. Long-run…

Q: Figure 34-3 PRICE LEVEL aaa" LRAS B Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS AD Refer to Figure 34-3. In…

A: In the Aggregate Demand-Aggregate Supply (AD-AS) model, short-run and long-run equilibrium refer to…

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