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- Solved What happens when short-run aggregate supply - Chegg
What happens when short run aggregate supply increases? Both price level and output remain constant The price level increases, and output decreases The economy experiences inflation without a change in output
- Macro Econ Chapter 8 Flashcards | Quizlet
The sticky price explanation of the short-run aggregate supply curve says that when the average price level rises: because of adjustment costs associated with changing prices, some firms will not raise their prices immediately which may temporarily boost their sales Suppose that product prices start rising but nominal wages do not In that case:
- Solved 25 of 57 Concepts completed (i)Multiple Choice - Chegg
Enhanced with AI, our expert help has broken down your problem into an easy-to-learn solution you can count on What happens in the short run when aggregate supply is held constant and aggregate demand increases? The price level falls, real output falls, and unemployment falls The price level rises, real output rises, and unemployment falls
- Macroeconomics Chapter 10 Flashcards | Quizlet
Consider the different characteristics of the aggregate demand curve and the short-run aggregate supply curve For each of the statements below, determine which curve is being described and place the description into the proper bin
- Short-Run Aggregate Supply: Curve, Determinants and Shifts
Short-run aggregate supply refers to aggregate output when some costs are variable If we plot the curve, it has a positive slope, where aggregate output increases as the price level increases and vice versa The positive slope is due to several costs, such as wages, being inflexible
- Aggregate Supply: Aggregate Supply and Aggregate Demand - SparkNotes
When this occurs, the aggregate demand curve shifts along the short-run aggregate supply curve until the long-run aggregate supply curve, the short-run aggregate supply curve, and the aggregate demand curve all intersect
- macroeconomics quiz ch 12 Flashcards | Quizlet
Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the process by which each of the following government policies will move the economy from one long-run macroeconomic equilibrium to another
- 22. 2: Aggregate Demand and Aggregate Supply: The Long Run and the Short . . .
The first reduces short-run aggregate supply; the second increases aggregate demand Both events change equilibrium real GDP and the price level in the short run
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