« previous next »

Author Question: Why does the short-run aggregate supply curve slope upward? What will be an ideal ... (Read 109 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
on: Jun 29, 2018
Why does the short-run aggregate supply curve slope upward?
 
  What will be an ideal response?

Question 2

When calculating GDP, the Bureau of Economic Analysis revises its quarterly data
 
  A) a total of one time. B) many times over the next several years.
  C) a total of three times. D) a total of two times.


nital

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 29, 2018
Answer to Question 1

The short-run aggregate supply curve slopes upward because as the prices of final goods and services rise, the prices of inputs rise more slowly. The higher price level increases profits and the willingness of firms to supply more goods and services. A secondary reason the SRAS slopes upward is that, as the price level rises, some firms are slow to adjust their prices. A firm that raises its prices slowly when the price level increases may find that its sales increase and therefore will increase production.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Beheh

  • Hero Member
  • *****
  • Posts: 520
Reply #2 on: Jun 29, 2018
Correct answers!


nital

  • Sr. Member
  • ****
  • Posts: 320
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Slope Streaks in Acheron Fossae Slope Streaks in Acheron Fossae
The Light Curve of a Nova The Light Curve of a Nova
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
Slope Question Slope Question
A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ... A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ...
Video: Fermentation - When Oxygen Is Absent, Pyruvate to Lactate & Pyruvate to Ethanol

For a complete list of videos, visit our video library