The AD–AS or aggregate demand–aggregate supply model is a macroeconomic
model that .... The classical aggregate supply curve comprises a short-run
aggregate supply curve and a vertical ....
In the extended analysis of aggregate supply, the short-run aggregate supply
curve is: A. vertical and the long-run aggregate supply curve is horizontal.
The extended model is then used to glean new insights on demand-pull and ...
Short-run aggregate supply curve AS1, is constructed with three assumptions.
Summary and Analysis ... Notice that we begin at point A where short-run
aggregate supply curve 1 meets the long-run aggregate supply curve and
www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=wages, aggregate supply determinant
However, the macroeconomic analysis of aggregate supply is concerned with ...
To see how lower wages affect the short-run aggregate supply curve, click the ...
Alternatively, the economy could be in the middle of an extended expansion that
Explain the relationship between short-run aggregate supply and long-run ...
Discuss how to apply the "extended" (short-run/long-run) AD-AS model to ...
Explain the short-run trade-off between inflation and unemployment (the Phillips
Justifications for the aggregate supply curve to be upward sloping in the short-run
Because of this firms expect that they will benefit - at least in the short run - from a
... This allows economists to be more flexible in their analysis of a modern
economy. ... The long run aggregate supply curve (LRAS) is shown as a vertical
The long-run aggregate supply curve is perfectly vertical; changes in aggregate
demand only cause a ... In the short run, the nominal wage rate is taken as fixed.
Macroeconomic equilibrium in the short run is established when aggregate
demand intersects with ... with lower input costs causes the short run aggregate
supply curve to shift outwards. ... Extended Aggregate Demand and Supply