QUESTION 27 o b a sudden increase in the interest rates QUES

QUESTION 27 o b a sudden increase in the interest rates QUESTION 28 a the aggregate supply curve is a vertical line ob the aggregate supply curve is o d the aggregate supply curve is upward-sloping QUESTION 29 b exists only during an expansion

Solution

Answer 27 : Inflation is defined as Sustained increase in the average price level. Inflation shows that now goods and services are costly and the person purchased these goods and services from the same income. Inflation resulted decrease in purchasing power in an economy. Inflation resulted in consumpation of human being in an economy.

Answer 28 : The person who makes the statement assumed that aggregate supply curve is an upward sloping because as we know when there is increase in expansionary fiscal policy it will resulted in price level increases and there is an increase in the output level and economy able to attain full employment level. When there is an increase in the aggregate demand it resulted in increase in output as well increase in price level which is possible only when aggreate supply curve is upward.

Answer 29 : Scarcity means required people to make choice because as we know resources are scare and people must satisfied them by proper resources. As we know our needs and wants are unlimited but scarcity has resulted in making choice among different resouce. Needs and wants are unlimited but resources are scare.