Business, 02.04.2021 22:00 robert7248

Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Show the short-run effect of this optimism on the aggregate-demand curve.
Aggregate DemandAggregate SupplyLRASPrice LevelQuantity of OutputAggregate Demand Aggregate Supply LRAS
Which of the following reasons could explain why the aggregate quantity of output supplied changes?
A. Wages are not sticky.
B. The price level has risen.
C. Prices are sticky.
D. People have misperceptions about the price level.

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