All of 5.2 and 5.3 please. I don’t really know how to explain nor how to show. 5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of thefollowing events would affect the long-run aggregate supply curve.a. A lower price levelsb. A decrease in the labor forceA decrease in the quantity of capital goodsd. Technological changeC.5.3. Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagramto show what happens in both the long run and the short run when there is a decline in wealth.Explain how the economy moves back to full employment.

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5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of the following events would affect the long-run aggregate supply curve. a. A lower price levels b. A decrease in the labor force c. A decrease in the quantity of capital goods d. Technological change

5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of the following events would affect the long-run aggregate supply curve. a. A lower price levels b. A decrease in the labor force c. A decrease in the quantity of capital goods d. Technological change

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.4: The Aggregate-supply Curve

Problem 4QQ

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Question

All of 5.2 and 5.3 please. I don’t really know how to explain nor how to show.

5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of the
following events would affect the long-run aggregate supply curve.
a. A lower price levels
b. A decrease in the labor force
A decrease in the quantity of capital goods
d. Technological change
C.
5.3. Starting from long-run equilibrium, use the basic aggregate demand and aggregate supply diagram
to show what happens in both the long run and the short run when there is a decline in wealth.
Explain how the economy moves back to full employment.

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