(Solved by Humans)-Suppose firms become very optimistic about future business
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- Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment.
- 1.Show the short-run effect of this optimism on the aggregate-demand curve.
- 2.Which?of?the?following?reasons?could?explain?why?the?aggregate?quantity?of?output?supplied?changes??Check?all?that?apply.
- ????????????????????a.?Wages?are?not?sticky
- ????????????????????b.The?price?level?has?risen
- ????????????????????c.Prices?are?sticky
- ????????????????????d.?People?have?misperceptions?about?the?price?level
On the previous graph, show what happens to the short-run aggregate-supply curve in the long run. (Note: For now, assume there is no change in the long-run aggregate-supply curve.) The aggregate quantity of output demanded ______________Bypass any proctored exams 2025. Book your Exam today!
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This question was answered on: 10 May, 2025
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