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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."

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."

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 18E
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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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