Determine aggregate supply curve is vertical or not, Macroeconomics

Explain whether the following statements are true or false:

a) The long run aggregate supply curve is vertical because economic forces do not affect long run aggregate supply.

b) The aggregate demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.

c) Whenever the economy enters a recession its long run aggregate supply curve shifts to the left.

Related Discussions:- Determine aggregate supply curve is vertical or not

What has served as money?, As people went from barter societies to more adv...

As people went from barter societies to more advanced economies, money had to be invented. Several things successively served as money in the course of economic evolution. Arrowhea

Influx of foreign labor, If a nation were to experience an influx of foreig...

If a nation were to experience an influx of foreign labor into the market for corn production, the production possibilities frontier for the nation would: a. shift inward due to

Explain about economic cycle, Explain about economic cycle The economic...

Explain about economic cycle The economic cycle is a period of approximately 6 or 7 years in which the economy completes a cycle of downturn, recovery, recession, and boom. A p

Calculate the kernel estimator and plot histograms, We will look now at cha...

We will look now at changes in the income distribution of Canadians between 1991 and 2001. Use the census data for these years provided in the course web page. Download that data i

Maximizing tax revenue, Normal 0 false false false EN-I...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Equilibrium income, Equilibrium Income The next step is to use the agg...

Equilibrium Income The next step is to use the aggregate demand function, AD, to determine the equilibrium level of income and output. This is done in figure . Recall that the

Particular capabilities and resources, The resource based model identifies...

The resource based model identifies four criteria that firms can use to evaluate whether particular resources and capabilities are core competencies and can therefore, provide a ba

Free trade and protectionism, why is international trade important to sa

why is international trade important to sa

Consumer surplus and producer surplus, Suppose the inverse demand curve for...

Suppose the inverse demand curve for a market is equal to p = 100 -- 0.3Q. The inverse market supply curve is p = 20 + 0.5Q. 1. Calculate the equilibrium price and quantity;

Money multiplier, what is money multiplier? what is role , importance, adva...

what is money multiplier? what is role , importance, advantages , disadvantages , limitations and examples of money multiplier?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages