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Answer to Question #102119 in Microeconomics for komalpreet kaur

Question #102119
Draw an aggregate demand/aggregate supply diagram where equilibrium occurs below full
employment level of output. Now show the impact of a leftward shift in the aggregate supply
curve. What developments might cause such a shift?
1
Expert's answer
2020-02-03T10:23:43-0500


Examples of events that shift the aggregate supply curve to the left include an increase in wages, a decrease in physical capital stock, or use of expired technology.



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