Will each scenario shift the longrun aggregate supply AS cur

Will each scenario shift the long-run aggregate supply (AS) curve, the short-run AS curve, both, or neither?

-New technology improves solar panels so that they are less expensive

-Federal government spending increases

-A hurricane wipes out the orange crop in Florida

-A new oil field is discovered that will provide a six-month supply of oil

-A firm expects to introduce driverless cars within the next five years

Solution

New technology improves solar panels so that they are less expensive - Increase in aggregate supply due to improved technology.

-Federal government spending increases - Increase in aggregate demand due to increase in public expenditure

-A hurricane wipes out the orange crop in Florida - Decrease in aggregate supply due to sudden supply shock

-A new oil field is discovered that will provide a six-month supply of oil - Increase in aggregate supply due to new discovery of oil reserves

-A firm expects to introduce driverless cars within the next five years - It will effect employment rate and not AD -AS.

Will each scenario shift the long-run aggregate supply (AS) curve, the short-run AS curve, both, or neither? -New technology improves solar panels so that they

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