Question
Explain the influence of the event ( Walmart and Starbucks are open in UAE ) on the quantity of real GDP supplied and aggregate supply
Explain the influence of the event (Walmart and Starbucks are open in UAE) on the quantity of real GDP supplied and aggregate supply in UAE and use a graph to illustrate.
Please let me know if my answer to the question above is correct or partially correct. If it's partially correct, please answer the question thoroughly.
Here is my answer:
The investment will decrease unemployment while increasing output. If resource prices remain unchanged, inventory will increase, resulting in the utilization of idle capacity and an increase in revenue. Consequently, the profit will rise. This will increase the aggregate quantity of labor supplied, leading to an increase in real GDP and an upward shift in the slope of the aggregate supply curve. Nonetheless, production will fluctuate if resource prices increase or decrease, leading to a real GDP change. This will shift the aggregate supply curve to the right or left.
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