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?

Q: Which of the following would cause an increase in the price level in the long run? Select one: a.…

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Q: (a) Suppose the natural rate of unemployment for the economy is 5 percent and the economy is…

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Q: Economic activity fluctuates in the short-run. Why is this the case?

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Q: short-run equilibrium?

A: The Long run aggregate supply (LRAS) is vertical to Y-axis, which represents it is irresponsive to…

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A: The AD-AS model analyses the macroeconomic phenomenon of the economy. The intersection point of the…

Q: Starting from long-run equilibrium, what will be the impact of a decrease in aggregate dema It will…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: you want, you can) TO MAKE EXPLANATION IS SO İMPORTANT.NOTE THAT: DESCRIPTION ≠

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

Q: The answer selection for a is: Curve A is the ____ Short-Run Aggregate Supply Price Level…

A: Macroeconomics examines the working, composition, and dynamics of an economy. AD/AS model is used…

Q: Figure 15.1 Price level 8 O O O O LRAS C A Y₁ D AD₂ SRAS1 AD₁ SRAS₂ Real GDP (billions of dollars)…

A: Aggregate Demand is the sum of consumption, investment, government spending and net export.  The…

Q: (a) Suppose the natural rate of unemployment for the economy is 5 percent and the economy is…

A: Unemployment refers to the state of a person or individual who is actively looking for job or work…

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

A: In simple words we can say that the demand policies are generally known to be as that policies which…

Q: The following graph shows an increase in short-run aggregate supply (AS) in a hypothetical economy…

A: Aggregate supply is the quantity of goods supplied by all the firms in the economy at different…

Q: If the aggregate demand (AD) curve shifts from AD₁ to AD2, the resulting equilibrium price and…

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

Q: This is a more difficult question relating to the AS curve. Read the textbook chapter and chapter…

A: The whole supply of goods and services produced within an economy at a certain overall price in a…

Q: Assume that the economy begins in short-run equilibrium as shown in the graph below. Graph the…

A: The equilibrium occurs where the aggregate demand and supply are equal. Change in aggregate demand…

Q: If the long run aggregate supply curve shifts, does the short run aggregate supply curve also have…

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

Q: Then the world economy expands and the demand for Canadian-produced goods increases. Draw a curve…

A: Aggregate supply (AS) refers to the total quantity of goods and services that all producers in an…

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Q: Use the following graph to answer the next seven questions. The graph depicts an economy where…

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Q: The long run aggregate supply curve shifts to the right given that A there is a fall in the quantity…

A: The long-run aggregate supply (LRAS) curve depicts the potential level of output produced by an…

Q: A production possibilities curve (PPC) represents the maximum amount of two goods or services…

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

Q: What will the new price equal? 300 400 600 800

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Q: . Why the aggregate supply curve slopes upward in the short run n the short run, the quantity of…

A: In the short run, aggregate supply has more demand  (and costs) by expanding the utilization of…

Q: Assume that Canada is initially in long run equilibrium. Discuss how each of the following four…

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Q: How does the aggregate goods and services market differ from the regular supply and demand market?…

A: The aggregate goods and services market and the regular supply and demand market are distinctive in…

Q: The following events have occurred in the history of the United States: A deep recession hits the…

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Q: Explain the concept of excess demand in macroeconomics. Also, explain the role of open market…

A: Excess demand is defined as when aggregate demand exceeds aggregate supply at full employment.

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A: The great Recession and the Great depression are the two major economic downturns in the history.

Q: The prices of both soft and hard commodities are very volatile. Explain why?

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Q: The following event has occurred in the history of the United States: S. businesses expect future…

A: Aggregate demand refers to total demand for goods and services produced by a main nation in a given…

Q: What are the reasons for freight cycles?

A:

Q: If the economy goes into a recessionary gap, a) What will be the effect on the labor market? b) What…

A: Introduction Recessionary gap is the difference between real GDP and potential GDP. Here actual…