\" Northwest Arkansas Communi >G frictional unemployment-Goox rning.com/ibiscms/

Question

" Northwest Arkansas Communi >G frictional unemployment-Goox rning.com/ibiscms/mod/ibis/view.php?id-6372868 Jump to... 2018 11:55 PM0/15 Grade Cakculator Print 2 of 15 Map apling Learning Please complete the foliowing statement with the correct terms, and then adjust the graph below to show the effect of deflation occurring in the economy because it reflects a The short-run aggregate supply curve slopes relationship between , a measure of output, and downward wages positivenegative real GDP 39gregate upward price Real CDP O Previous O Check Answer Next -8 Exit- G-e Up & View Soutien Hint 3,017 24 (A) MacBook Pro

Explanation / Answer

Short run aggregate supply (SRAS) — During the short-run, firms possess one fixed factor of production (usually capital), and some factor input prices are sticky. The quantity of aggregate output supplied is highly sensitive to the price level

Aggregate supply in the short run (SRAS) is best defined as the total production of goods and services available in an economy at different price levels while some resources to produce are fixed. What do we mean by 'fixed?' In the short run, companies increase aggregate supply in an economy by increasing their use of current inputs, such as labor hours. Companies, like our sunglasses shop, work current employees and available machinery more to produce additional product.

the short run aggregate

slopes upward because prices of some goods and services react sluggishly to changing economic conditons, and there is a positive association between the overall price level and the quantity of output, this positive association is represented by the upward slog of the short run aggregate supply curve

The upward-sloping aggregate supply curve—also known as the short run aggregate supply curve—shows the positive relationship between price level and real GDP in the short run.

Short run aggregate supply is the quantity of goods and services that businesses are willing and abel to produce at give level of prices

SRAS is the relationship between real GDP and the price level

SRAS shows how output the economy can generate in the short term at each price level

A rise in the price level should stimulate an expansion of supply

When prices are falling, production may contract

Wage rate for labour

Other resources prices such as raw material prices and component price

( The short-run aggregate supply curve slopes upward because it reflects a positive relationship between real GDP a measure of output and wages )

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.