The Aggregate Supply Curve: is irrelevant for determining maxroeconomic equilibr
ID: 1204246 • Letter: T
Question
The Aggregate Supply Curve: is irrelevant for determining maxroeconomic equilibrium has a negative slope Shift with changes in consumer spending, investment, government spending, and exports Shows the various levels of output produced in the economy at different average price levels The short-run A5curve drawn under the assumption that nominal wages are increasing average pute levels are fixed Interest rates are decreasing the costs of the factors of production arc constant The short run A5 curve shifts to the left when: The short-run A8 curve shifts to the left when: production technology increases equipment prices rise people expect lower inflation rates wages are reducedExplanation / Answer
Q21.In economics, aggregate supply (AS) or domestic final supply (DFS) is the total supply of goods and services that firms in a national economy plan on selling during a specific time period. It is the total amount of goods and services that firms are willing and able to sell at a given price level in an economy.
The short run AS curve is drawn given some nominal variables such as the nominal wage rate, which is assumed fixed in the short run.
Answer: D
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