Some Economists Argue That at Low Levels of GDP Shifts

question 150

Essay

Some economists argue that at low levels of GDP shifts in the aggregate demand curve increase output without significant increases in the price levels (without inflation), while at higher level of output a shift in the aggregate demand increases significantly the price level without much effect on output. How would an aggregate supply curve look like according to this theory?

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Intrinsic Value

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The predetermined price at which the holder of an option has the right to buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

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Strike Price

The set price at which an option contract can be bought (call option) or sold (put option) when it is exercised.