Now draw a long-run aggregate supply curve that intersects, Econometrics

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Now draw a long-run aggregate supply curve that intersects

Draw a short-run aggregate supply curve that gets steeper as real GDP rises.

a. Explain why the curve has this shape.

b. Now draw a long-run aggregate supply curve that intersects a short-run AS curve. What is the relationship between short-run AS and long-run AS?

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Econometrics: Now draw a long-run aggregate supply curve that intersects

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Econometrics: Now draw a long-run aggregate supply curve that intersects

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