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Explain How Each of the Following Events Would Affect the Long-Run

question 92

Essay

Explain how each of the following events would affect the long-run aggregate supply curve.
a.A lower price level
b.A decrease in the labor force
c.A decrease in the quantity of capital goods
d.Technological change


Definitions:

Unemployment

The state of being jobless and actively looking for work.

Recession 2008-2009

A period marked by a significant decline in economic activity across the global economy, initiated by the financial crisis of 2007-2008.

Business Cycle

The natural rise and fall of economic growth, consisting of periods of expansion and contraction in the economy over time.

Aggregate Demand

The total demand for goods and services within a particular market or economy at current price levels.

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