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Most economists use the aggregate demand and aggregate supply model primarily to analyze which of the following? Select one:
In which situation would the long-run aggregate- supply curve shift left? Select one: a. if there is a hurricane O b. if the
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Answer #1

Q-1 :: ANSWER :: (B) Short-Run Fluctuation s In The Economy

=>Explanation ::

AD-AS Model Examine The Price Level and Output Of The Country By The Use Of Aggregate Demand And Aggregate Supply. It Helps To Determine The National Income And Changes In The Price Level In The Country.It Indicate The Business Cycle Fluctuation And Examine The Short Run Fluctuation Effect On The Real GDP And The Inflation During Some Period Of Time In The Country.

Q-2 :: ANSWER :: (A) If There Is A Hurricane

=>Explanation ::

If Hurricane Occur In The Country It Decrease The Aggregate Supply Curve In The Long Run Because It Affect Many Peoples In The Country And Production At That Time Decrease so In The Long Run Supply For That Production Decrease. So We Assume That If There Is A Hurricane It Shift The Aggregate Supply Curve To The Left.

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