Input costs being slow to change is a factor of: a. short-run aggregate demand curve b....
Input costs being slow to change is a factor of:
a. short-run aggregate demand curve
b. long-run aggregate demand curve
c. short-run aggregate supply curve
d. long-run aggregate supply curve
Homework Answers
ANswer
Option c
c. the short-run aggregate supply curve
the change in the input prices is slow so the curve is upward sloping in the short run and these are fully flexible i the long run so the long-run AS is vertical.
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Input costs being slow to change is a factor of:
a. short-run aggregate demand curve
b....
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Figure 20-1
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