What is the importance of the slope of the AS curve from the standpoint of stabilization...

What is the importance of the slope of the AS curve from the standpoint of stabilization policy?

Expert Solution

There is a lot of importance of the slope for AS (Aggregate Supply) curve. The AS curve is the key factor played an important role in the product and organization. The total sales, revenue and forecasting analysis of the product are all the areas can analyze by this Aggregate Supply curve. If any firm or organization met the criteria of AS curve based on their operations so the positive impact showing on their goods and services. In future, the labor and capital also they can enhance due to their operations meet AS curve. It is really letting know about the positive indications about the goods & services, workforce, and revenue. Suppose, if the curve is showing below AS then it indicates as necessary to improve the production operations and sales. So, the AS curve is the stable point to determine the firm/organization status reveals and indicates the further actions in the production.

Rahul Sunny answered 2 years ago

Slope of a curve

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