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Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?
Aggregate demand curve.
What factors cause a shift to the right in the aggregate supply curve?
ask your mom!
What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
Will a technological advance shift the supply or demand curve?
it will shift the supply curve to the right
Does a change in producers' technology lead to a movement along the supply curve or shift in the supply curve?
just lead to a shift in the supply curve.
Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?
Aggregate demand curve.
What factors cause a shift to the right in the aggregate supply curve?
ask your mom!
What effect would a decrease in production costs for all firms have on the aggregate supply curve?
the curve would shift to the right
Will a technological advance shift the supply or demand curve?
it will shift the supply curve to the right
Does a change in producers' technology lead to a movement along the supply curve or shift in the supply curve?
just lead to a shift in the supply curve.
Does a change in producers' technology lead to a movement along the supply curve or a shift in the supply curve?
Changes in a producer's technology can lead to a SHIFT in the supply curve.
What is a rightward shift of a supply curve?
A rightward shift is an increase in supply.
What would cause the aggregate demand curve to shift to the right?
The aggregate demand curve will shift to the right as the economy expands. When that happens, the quantity of output demanded for a given price level rises.
Does a change in price level shift the aggregate demand curve?
Yes
How inflation arises through an outward shift of an aggregate demand curve?
no
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.
Why does the slope of the aggregate supply curve change from the short run to the long run?
Aggregate supply is a measure of the total goods and services produced by an economy at various price levels, either in the short run or in the long run. Short run aggregate supply curve is assumed to be upward sloping. Higher prices for goods and services means more profit for suppliers, so they will produce more goods and services. Long run aggregate supply curve is assumed to be vertical. Short run aggregate supply curve is curved because prices can change. A change in the price level means a movement along the short run aggregate supply curve. An increase in costs results in a fall in aggregate supply because the output is less at every price level. A decrease in costs results in a rise in aggregate supply because the output is more at every price level. In the long run, the aggregate supply is assumed to be independent of price level. In other words, the economy is at the maximum output possible. Full employment level has been reached and real GDP has reached its maximum potential, so the long run aggregate supply curve must be drawn as vertical. Increases in the quality and number of factors of production will cause the productivity of the suppliers to increase, and the long run aggregate supply will shift right.
