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Why is the long run aggregate supply LRAS curve vertical?
The Long-Run Aggregate Supply Curve is vertical at full-employment GDP with respect to the price level. In the long-run the quantity of output supplied depends on the economy's resource endowment, technology, and its governing institutions. The price level does not affect these variables in the long-run.
How is GDP related to aggregate supply and demand?
Temporary or short run changes in input prices and resource costs will shift the SRAS curve without changing the full employment level of real GDP and shifting the LRAS curve.
The quantity of full employment occurs when aggregate supply reaches what range?
This happens when the employment is somewhere between 2% and 13%. This range is necessary in order to control the levels of inflation in the country.
What are the factors affect the shape of the magnetization curve?
there is no factors
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
Why is the long run aggregate supply LRAS curve vertical?
The Long-Run Aggregate Supply Curve is vertical at full-employment GDP with respect to the price level. In the long-run the quantity of output supplied depends on the economy's resource endowment, technology, and its governing institutions. The price level does not affect these variables in the long-run.
How is GDP related to aggregate supply and demand?
Temporary or short run changes in input prices and resource costs will shift the SRAS curve without changing the full employment level of real GDP and shifting the LRAS curve.
The quantity of full employment occurs when aggregate supply reaches what range?
This happens when the employment is somewhere between 2% and 13%. This range is necessary in order to control the levels of inflation in the country.
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
What are the factors affect the shape of the magnetization curve?
there is no factors
Supply-side economics means?
Very basically supply-side economics is a view on the economy which differs from the norm i.e. Keynesian economics. The differences are complicated and numerous but one key one is the aggregate supply cure, that is that Keynes (lord john maynard keynes) drew the LRAS curve as a horizontal line with a curve upwards at the end (i.e full employment) that is that to achieve full employment inflation will be caused the closer you get. Where as supply-side economists such as Friedman draw the LRAS curve as perfectly inelastic (i.e. vertical) as they believe that the current level of employment is always the maximum as the unemployed are voluntarily unemployed because they are unwilling to work for a low enough wage. There are numerous other differences and the one i have briefly tried to outline is a very brief and just a small insight into the differences.
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
What make a curve ball curve when you throw it?
Three things affect the trajectory of a curve ball: Coriolis effect, gravity and precession AKA spin drift.
How does public capital affect a nation's curve?
By increasing output
How does surface area affect the cooling curve?
put it in the fridge
What is a demand curve and how it is different from demand function?
The demand curve demonstrates what happens when a product is demanded by customers. A demand function refers to an event that can affect the demand curve.
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
