Asked by Zachary Summach on Jun 24, 2024

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Explain how a change in the expected price level would shift the short-run and long-run aggregate-supply curves.

Expected Price Level

The forecasted average price across all goods and services in an economy, reflecting the expected general price environment.

Long-Run Aggregate-Supply

The total quantity of goods and services that producers in an economy are willing and able to supply at a full employment level, without any changes in the price level over the long term.

  • Recognize how expectations regarding future price levels shape the aggregate demand and supply curves.
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Clayton BergerJul 01, 2024
Final Answer :
Expected price level changes would shift the short-run aggregate-supply curve, but would not shift the long-run aggregate-supply curve.