Fill in the blanks with the following numbers, not the words, for this and all the...

Fill in the blanks with the following numbers, not the words, for this and all the questions that follow. Jot them down so you won't have to keep scrolling up to the top to see what they are:

Demand = 1
Supply = 2
Right = 3
Left = 4
Up = 5
Down = 6

QUESTION 4

Consider the case where an important technological innovation (e.g., the personal computer, iPhone, Internet, etc.) made labor more productive. This would cause the Aggregate A)___________ curve to shift to the B)___________ , causing output to go C)___________ and the price level to go D)____________-

Solutions

Expert Solution

Ans) Labour productivity, change ininput costs, change in technology etc are aggregate supply shifters.

An increase in aggregate supply will shift AS curve to the right. A decrease in aggregate supply will shift AS to the left.

Above diagram shows decrease in aggregate supply.

Above figure shows increase in aggregate supply.

Rahul Sunny answered 1 year ago

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