Question:

Why is the supply curve for public goods upward sloping?

Answer:

A change in the price level (for example brought about by a shift in AD) results in a movement along the short run aggregate supply curve. The slope of SRAS curve depends on the degree of spare (under-utilised) capacity within the economy.


Tags:
Demand
Consumer theory
Supply and demand
Supply
Long run and short run
IS/LM model
AD-AS model
Economics
Macroeconomics
Aggregate supply
Related Websites:


News:


Terms of service | About
24