Explain why the following statements are false.a. “The aggregate-demand curve slopes downwardbecause it is the horizontal sum of the demandcurves for individual goods.”b. “The long-run aggregate-supply curve is verticalbecause economic forces do not affect long-runaggregate supply.”
Explain why the following statements are false.a. “The aggregate-demand curve slopes downwardbecause it is the horizontal sum of the demandcurves for individual goods.”b. “The long-run aggregate-supply curve is verticalbecause economic forces do not affect long-runaggregate supply.”
Chapter10: Bringing In The Supply Side: Unemployment And Inflation?
Section: Chapter Questions
Problem 1DQ
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Explain why the following statements are false.
a. “The aggregate-demand curve slopes downward
because it is the horizontal sum of the demand
curves for individual goods.”
b. “The long-run aggregate-supply curve is vertical
because economic forces do not affect long-run
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