**Question 2**Which equation is a plausible aggregate supply curve?- ○ Y = 250 - 80r- ○ π = 2 + 0.3 (Y - 75)- ● Y = 50 - 1.25π- ○ π = 5 - 0.4 (U - 6)- ○ none of the above**Explanation:**In the context of the question, an aggregate supply curve represents the relationship between the total quantity of goods and services that firms are willing and able to produce and the overall price level. The chosen option (“Y = 50 - 1.25π”) suggests an inverse relationship between output (Y) and inflation (π), which is a common representation of the aggregate supply curve. The other options don't fit the typical model of aggregate supply equations.

A aggregate supply curve depicts the positive relationship between price level and output.…

Answered: Which equation is a plausible aggregate…

Which equation is a plausible aggregate supply curve? O Y = 250-80r OTT= 2 + 0.3 (Y - 75) Y = 50 -1.25TT OTT= 5-0.4 (U - 6) none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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