Economics 1021A/B Study Guide - Final Guide: Technological Change, Potential Output, Canadian Dollar

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Michael Kottelenberg

Document Summary

Which graph illustrates what happens when factor prices decrease: (a, (b, (c, (d, (a) and (b) Chapter 26: aggregate supply and aggregate demand: refer to figure 26. 1. 1. Which graph illustrates what happens when factor prices rise: (a, (b, (c, (d, (a) and (b) Topic: aggregate supply: the long-run aggregate supply curve is, vertical, negatively sloped, positively sloped but extremely steep, almost flat, positively sloped at low levels of real gdp and vertical at high levels of real gdp. Topic: aggregate supply: the short-run aggregate supply curve is the relationship between the quantity of real gdp supplied and, the quantity of real gdp demanded, real income, the inflation rate, the real interest rate, the price level. Topic: aggregate supply: everything else remaining the same, the short-run aggregate supply curve shifts rightward if, the money wage rate increases, aggregate demand increases, the full-employment quantity of labour increases, factor prices increase, the quantity of capital decreases.