Question
Question 2 on assignment At the macroeconomic level, we look at an 'aggregate' of economic activity instead of individual demand and supply of a good
Question 2 on assignment
At the macroeconomic level, we look at an 'aggregate' of economic activity instead of individual demand and supply of a good or service.Aggregate Demand, Aggregate Supply and long run Aggregate Supply make up the aggregate or macroeconomic model.
Keynes believed that the aggregate economy did not necessarily fluctuate freely to reach potential income (the equilibrium point) and that actions could be taken assist the economy in reaching its potential.
Look at the graph below, a decrease in input prices in the short run is like to cause a movement in the supply curve.How is the change represented in the graph below?
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