In terms of the statement below, what are the 2 main factors affecting the aggregate supply curve. Explain these factors and use a diagram. "Fluctuations in employment over the business cycle bring fluctuations in real gross domestic product. However, these changes in real GDP are fluctuations around potential GDP. It is not changes in potential GDP and long run aggregate supply."

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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In terms of the statement below, what are the 2 main factors affecting the aggregate supply curve. Explain these factors
and use a diagram. "Fluctuations in employment over the business cycle bring fluctuations in real gross domestic
product. However, these changes in real GDP are fluctuations around potential GDP. It is not changes in potential GDP
and long run aggregate supply."
Transcribed Image Text:In terms of the statement below, what are the 2 main factors affecting the aggregate supply curve. Explain these factors and use a diagram. "Fluctuations in employment over the business cycle bring fluctuations in real gross domestic product. However, these changes in real GDP are fluctuations around potential GDP. It is not changes in potential GDP and long run aggregate supply."
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