0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What factors cause a shift to the left in the aggregate supply curve?
A contraction, or shift to the left can be caused by a negative change in: * The price level. * The level of technology in an economy. * The size of a labour force and its skills. * The amount and state of capital equipment. * The skill of management to combine resources and use them effectively.
What will always cause a supply curve to shift to the left?
advaces in tec
Cause the aggregate demand curve to shift outward?
Real shocks will determine the direction of the long-run aggregate demand curve. A real shock is an event or certain factors that cause more or less production. A war, for instance will halt factories from producing goods and will cause the aggregate demand curve to shift left. Higher production will lead to an outward shift to the right.
What is determinants of supply?
It is the factor when they change they cause supply curve to shift to either left or right.
What is aggregate shock?
In economics, the supply curve in the aggregate supply and demand model shifts drastically to the left due to an inadequacy of resources or because the demand overpowers the supply.
What will cause a supply curve to shift to the left?
advaces in tec
What factors cause a shift to the left in the aggregate supply curve?
A contraction, or shift to the left can be caused by a negative change in: * The price level. * The level of technology in an economy. * The size of a labour force and its skills. * The amount and state of capital equipment. * The skill of management to combine resources and use them effectively.
What will always cause a supply curve to shift to the left?
advaces in tec
What is the determinents of supply?
It is the factor when they change they cause supply curve to shift to either left or right.
Cause the aggregate demand curve to shift outward?
Real shocks will determine the direction of the long-run aggregate demand curve. A real shock is an event or certain factors that cause more or less production. A war, for instance will halt factories from producing goods and will cause the aggregate demand curve to shift left. Higher production will lead to an outward shift to the right.
Will technological advances will cause the supply curve to shift to the left or right?
right
What is determinants of supply?
It is the factor when they change they cause supply curve to shift to either left or right.
What is aggregate shock?
In economics, the supply curve in the aggregate supply and demand model shifts drastically to the left due to an inadequacy of resources or because the demand overpowers the supply.
How would a new excise tax effect the supply curve?
It would probably cause the supply curve upwards and shift to the left.
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
Which way will an increase in labor cost shift the supply curve?
An increase in labor cost will decrease supply, so the supply curve will shift left.
