Question 5 1 pt The curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly. short-run aggregate demand long-run aggregate supply short-run aggregate supply long-run aggregate demand
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This curve shows the relationship between the price level and the quantity of real GDP supplied in the short run, holding all other factors constant. Show more…
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The economy is in long-run equilibrium. Congress passes new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short-run aggregate supply, and long-run aggregate supply in the short run? Explain what happens to the short-run equilibrium price level and output. And what happens in the long run and long-run equilibrium price level and output? Explain your answer using aggregate demand and aggregate supply.
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1 multiple choice question -- Aggregate supply curve: What would result if the AS curve shifts to the left? A) Equilibrium GDP will fall and prices will rise. B) Equilibrium GDP will fall and prices will also fall. C) Equilibrium GDP will rise and prices will fall. D) Equilibrium GDP will rise and prices will also rise.
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