Evaluate wheather each of the following statements is true or false, and explain

Question

Evaluate wheather each of the following statements is true or false, and explain your answer: a. The short-run aggregate suppl (SAS) curve slopes upward because households spend more as their incomes increase. b. The long-run aggregate supply curve can never shift. c. either a decrease in the nominal money supply by the federal reserve, all else held constant or an increase in the price level, all else held constant, will shift the aggregate demand curve to the left. d. the kenesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionar situation. e. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate suppl (SAS) curve.

Explanation / Answer

a. The short-run aggregate suppl (SAS) curve slopes upward:

True.

b. The long-run aggregate supply curve can never shift:

False.

c. Either a decrease in the nominal money supply by the federal reserve, all else held constant or an increase in the price level, all else held constant, will shift the aggregate demand curve to the left:

True.

d. Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate suppl (SAS) curve.

False.

*****

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.