Asked by
Abraar Rahman
on Nov 11, 2024
Verified
The figure below shows equilibrium in an aggregate demand-aggregate supply model.The shift from AS to AS' in this figure represents a(n) :
A) increase in short-run aggregate supply.
B) increase in long-run aggregate supply.
C) decrease in short-run aggregate supply.
D) decrease in long-run aggregate supply.
E) decrease in the aggregate quantity demanded.
Short-Run Aggregate Supply
Represents the total supply of goods and services that firms in an economy plan on selling during a short-term period, given the level of prices.
Long-Run Aggregate Supply
Represents the total output an economy can produce when both capital and labor are fully employed, assuming constant technology and resources.
- Learn about the factors impacting the displacement of aggregate supply curves in the short run and long run.
Verified Answer
DR
Learning Objectives
- Learn about the factors impacting the displacement of aggregate supply curves in the short run and long run.
Related questions
If Resource Suppliers and Demanders Find Out That the Actual ...
Which of the Following Is True of an Expansionary Gap ...
Which of the Following Does Not Influence the Position of ...
The Short-Run Equilibrium Output in the Economy Described by the ...
If Resource Prices Are Flexible,the Long-Run Aggregate Supply Curve Is ...