Supply lies to the right of long run aggregated supply

Assignment Help Business Economics

Reference no: EM131101553

a. if the long run aggregated supply is drawn at an economy's natural rate of unemployment, how can any points on the short run aggregated supply lies to the right of long run aggregated supply?

b. supposed short-run equilibrium lies to the right of long run aggregated supply. is this level of output sustainable over the long run? why or why not? what is the adjustment process that would occur in the economy to bring the economy to the long-run equilibrium level of output?

Reference no: EM131101553

Questions Cloud

Nations that run current account surpluses : So now that you’re experts on international macroeconomics, you might find interesting looking at nations that run current account surpluses, for example, Germany, Japan, and China. What trends do you notice? Which one of these series appears unique?..

About the negative supply shocks : Negative Supply Shocks – How often are negative supply shocks, i.e., leftward shifts of the AS curve, which we’ll also discuss next week, associated with recessions? Plot on a quarterly basis since the beginning of the series the real price of oil – ..

Reducing healthcare spending : Reducing healthcare spending in the U.S. by 20% is likely to result in a

Disagree with the argument presented : State the author’s argument and whether you agree or disagree. State your rationale. Why do you agree or disagree with the argument presented?

Supply lies to the right of long run aggregated supply : if the long run aggregated supply is drawn at an economy's natural rate of unemployment, how can any points on the short run aggregated supply lies to the right of long run aggregated supply?

Balance of the debt at the end of the credit period : The Peel Trading Company received an invoice dated September 20 for $16 000 less 25% and 20%, terms 5/10, 2/30, n/60. Peel made a payment on September 30 to reduce the debt to $5000 and a payment on October 20 to reduce the debt by $3000. What amount..

What are potential advantages of utilizing an aggregator : Media aggregators are utilized to bring together mass volumes of news together in one piece for consumers. With the continued advent of new technologies, the Internet has become ripe with various aggregators. What are the potential advantages of util..

Suppose that the quantity demanded in the world market : Suppose that the quantity demanded in the world market is given by the demand function Qd = 80-0.4P Where P is the price in dollars per barrel and Qd is the quantity in millions of barrels per day. The quantity supplied is given by the supply functio..

Is the firm earning an economic profit : A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. This firm is earning $15 on every $150 invested by its founders. What is its percentage rate of return? percent. Is the firm ..

User Account

All Pages