Briefly explain what effect and why, a slowdown in Technological progress would have on the Aggregate Supply curve.

Q: Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that…

A: Aggregate demand curve shows the inverse relationship between price level and real GDP. AD curve is…

Q: Explain the difference between long run and short run aggregate supply. Why do economists…

A: Aggregate supply is defined as the total amount of goods produced and offered for sale by the…

Q: From 1/1/2020 to 7/1/2020, real GDP decreased but the GDP deflator stayed approximately the same…

A: In an economy, changes in real GDP and nominal GDP will affects the the value of GDP deflator and it…

Q: In the year 2020, aggregate demand and aggregate supply in the fictional country of Marjan are…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: There are three reasons the aggregate demand curve is downward sloping. What are they? Explain each…

A: Three reasons that show the Aggregate Demand curve is downward sloping: 1- Pigou's wealth effect. It…

Q: The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy…

A: The short-run aggregate supply curve refers to the total output of an economy in a given fiscal…

Q: When a pandemic strikes the Australian economy, many businesses are temporarily closed, aggregate…

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Q: Suppose the economy is in a situation of moderate unemployment, and then an exogenous increase of…

A: If the economy is in a situation of moderate unemployment in short run, it has ability to employ…

Q: What relationship does the short-run aggregate supply curve represent?

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Q: The graphs illustrate an initial equilibrium for the economy. Suppose that the Federal Reserve…

A: Short-term macroeconomic situations involve immediate responses to fluctuations in demand or supply,…

Q: Using the aggregate supply–aggregate demand model, explain how output and prices are determined.…

A: The aggregate demand is the demand for all the goods and services produced in the economy. The…

Q: Why does the short-run aggregate supply curve slope upward to the right? If the prices of both (a)…

A: Aggregate supply is the total amount of services and commodities that firms in an economic plan to…

Q: Given the following circumstances, indicate whether or not the aggregate supply curve would shift…

A: Note : Since , there are multiple sub parts of the question , only the first three sub parts shall…

Q: A technological improvement raises productivity. On the following graph, indicate the short-run and…

A: in the short run, the price level increases output level increases because an increase in demand…

Q: Use appropriate graph(s) to explain the effect of each of the following events, if any, on the…

A: Graph Representations Graph a)SRAS shifts right.LRAS shifts right.AD shifts right. This combined…