Reference no: EM13802180
An introduction to the AD-AS model
The aggregate demand and aggregate supply model is a useful simplification of the macro economy used to explain short-run fluctuations in economic activity around its long-run trend.
The vertical axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following?
The price of a particular representative good produced in the economy
The amount of a particular representative good produced in the economy
An economy's price level
Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply.
As the price level rises, firms find it more profitable to hire workers at any given wage.
As the price level rises, firms expand their production because they can sell their output for more money.
As the price level rises, firms pay higher wages for workers.
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The aggregate demand and aggregate supply model
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