Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Join our platform to connect with experts ready to provide detailed answers to your questions in various areas. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Think of the simple quantity theory of money in the AD-AS framework. In that framework, the AS curve is a.horizontal. b.upward-sloping. c.kinked at Natural Real GDP. d.vertical. e.downward-sloping.

Sagot :

In the simple quantity theory of money in the AD-AS framework, the AS curve kinked at natural real.

What is AS curve or Aggregate Supply Curve?

  • The amount of real GDP that the economy produces at various price levels is represented by the aggregate supply curve.
  • The methodology used to build the supply curve for all products and services is different from the methodology used to build the supply curve for individual goods and services.
  • It is assumed that input prices will remain constant when calculating the supply curve for a certain good.
  • The price level, however, defines the aggregate supply curve. As the price level rises, producers will be able to charge more for their goods, which will stimulate production.
  • However, a price increase will also have a secondary effect that will eventually result in an increase in input prices.

To learn more about the Aggregate Supply Curve refer to:

https://brainly.com/question/24303271

#SPJ4

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.