Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Is aggregate demand always corrected for in the long-run? I'm writing a paper that asks me to explore factors that affect long-run economic growth and

Is aggregate demand always corrected for in the long-run?

I'm writing a paper that asks me to explore factors that affect long-run economic growth and to discuss them within the AS/AD framework. If long-run growth is affected by inputs and outputs but aggregate demand is affected by GDP factors, does that mean that changes to AD are always short-run and will be corrected in the long-run?

If I am wrong, then what long-run economic growth factors affect aggregate demand?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions