There are three distinct reasons why the aggregate demand curve slopes downward. List and discuss each reason. The aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run). In what time frame is the aggregate supply curve vertical? Why? In what time frame is the aggregate supply curve upward sloping? Why?
There are three distinct reasons why the aggregate demand curve slopes downward. List and discuss each reason. The aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run). In what time frame is the aggregate supply curve vertical? Why? In what time frame is the aggregate supply curve upward sloping? Why?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 2CQ
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- There are three distinct reasons why the aggregate demand curve slopes downward. List and discuss each reason.
- The
aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run). In what time frame is the aggregate supply curve vertical? Why? In what time frame is the aggregate supply curve upward sloping? Why?
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