Asked by nadezhda kurilov on Jun 24, 2024
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If aggregate demand shifts right, then eventually price level expectations rise. The increase in price level expectations causes the short-run aggregate-supply curve to shift to the left.
Price Level Expectations
Price level expectations refer to the anticipations of consumers, firms, and other economic actors regarding the future general price level in the economy, influencing their economic decisions.
Short-Run Aggregate-Supply Curve
A visual depiction that illustrates the link between the overall output of goods and services and the price level for production in the short-term.
- Apprehend the connection linking aggregate supply, aggregate demand, and the state of economic equilibrium.
- Gain insight into the response of output and price levels to economic policies and external shocks.
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Learning Objectives
- Apprehend the connection linking aggregate supply, aggregate demand, and the state of economic equilibrium.
- Gain insight into the response of output and price levels to economic policies and external shocks.
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