The aggregate supply curve (AS) is positive relationship with price (P) in the short run; therefore the curve is upward sloping from left to
The aggregate supply curve (AS) is positive relationship with price (P) in the short run; therefore the curve is upward sloping from left to right. Whereas, in the long run aggregate supply (LRAS) curve is vertical. On the other hand, aggregate demand (AD) curve is downward sloping curve, showing the adverse relationship between output(Y) and price (P). a. Give two (2 only) factors that cause AS curve to shift to the right? b. Give two (2 only) factors that cause AS curve to shift to the left? c. Give two (2 only) factors that cause AD curve to shift to the right? d. How wealth and interest rate are being determinants of consumption C from Keynesian Theory of Consumption's perspective? e. Without graft, what is inflation? How does it occurred? Why inflation distorts economic growth?
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A1 An increase in the money supply would lead to an increase in the price level and therefore cause the AS curve to shift to the right 2 An increase i...
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Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
