Question

Explain why the SAS (short-run aggregate supply) curve slopes upward and the LAS (long-run aggregate supply)...

Explain why the SAS (short-run aggregate supply) curve slopes upward and the LAS (long-run aggregate supply) curve is vertical

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Short run aggregate supply curve is upward sloping because when the price rises then producer of the product want to sell more so that he can earn more profi so as the price rises the quantity supplies also increases.

According to the sticky price theory the short run aggregate supply curve is upward sloping because the price of some goods are slow to adjust to changes in the overall price level.

Long run aggregate supply is vertical because the long run output is not related to the price level and do not affect the potential gdp because potential gdp is depends upon the labour force, technology and capital stock.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why the SAS curve slopes upward and the LAS curve is vertical.
Explain why the SAS curve slopes upward and the LAS curve is vertical.
Explain why the aggregate supply (AS) curve slopes upward in the short-run. Explain how the concept...
Explain why the aggregate supply (AS) curve slopes upward in the short-run. Explain how the concept of “full employment” is related to a vertical AS curve in the long-run.
Question 11 pts The aggregate supply curve is vertical in the short run. slopes downward because...
Question 11 pts The aggregate supply curve is vertical in the short run. slopes downward because of sticky wages and prices. is vertical in the long run. slopes downward largely because of the trade effect and wealth effect. Flag this Question Question 21 pts The aggregate supply curve is vertical in the short run. slopes downward because of sticky wages and prices. is vertical in the long run. slopes downward largely because of the trade effect and wealth effect. Flag...
Explain why the short-run aggregate supply curve is upward sloping.
Explain why the short-run aggregate supply curve is upward sloping.
Explain why nominal wage is "sticky" in the short run, and why the short-run aggregate supply...
Explain why nominal wage is "sticky" in the short run, and why the short-run aggregate supply curve is upward sloping? Explain why the long-run aggregate supply curve is a vertical line. Part b (10 points) In labor macroeconomics, the process to determine nominal wage between the employer (firm) and the workers, commonly known as the wage determination process is often illustrated as the following graph. Explain in words the wage determination process. Hint: The wage determination process indicates how an...
If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve...
If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, this curve: a) is vertical. b) is horizontal. c) slopes downward and to the right. d) slopes upward and to the right.
Why is the long-run aggregate-supply curve vertical?
Why is the long-run aggregate-supply curve vertical?
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run...
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. Suppose that the country experiences an important crop failure due to severe tornadoes. What will be the immediate impact following the shock? Select one: a. the short-run aggregate supply curve shifts up, the price level rises, and output falls. b. the price level falls, output falls, and the short-run aggregate supply curve shifts down. c....
with the use of Aggregate demand and the short run and long run aggregate supply curve,...
with the use of Aggregate demand and the short run and long run aggregate supply curve, explain and illustrate how policy marker can use fiscal policy to get the economy out of recession and stop inflation.
Draw a basic short run aggregate supply (SRAS), aggregate demand (AD) and long-run aggregate supply curve...
Draw a basic short run aggregate supply (SRAS), aggregate demand (AD) and long-run aggregate supply curve (LRAS) that shows the economy in long-run equilibrium.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT