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¨helps to ascertain the true status of macroeconomic value within a country because it includes :

¨Variables associated with the performance of an economy as a whole.

¨more value for finished goods which is a clear indicator of a healthy economy.

¨Aggregate supply also helps to pinpoint net increases or decreases from one period to the next

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Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?

Aggregate demand curve.


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The aggregate demand curve show what consumers are willing to buy at a given price level, whereas the aggregate supply curve shows what producers are willing to produce at a given price level.


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In which range of the aggregate supply curve is the price level constant?

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What happens to the income multiplier if the aggregate supply curve is vertical?

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What factors cause a shift to the right in the aggregate supply curve?

ask your mom!


Why is the short-run aggregate supply curve horizontal if?

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Aggregate supply curve is perfectly inelastic an increase in agregate demand will lead to?

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aggregate supply curve