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ElenaW [278]
3 years ago
11

Recent technological advances have improved the productivity of labor and return on capital. These technological advances has re

sulted in an increase in productivity of goods that can be mass produced on an inexpensive scale lowering firms’ costs. Analyze the implications of the technological revolution in the short and long run. Be sure to label the axes, curves, use arrows to show shifts in curves, and mark the equilibrium points: "A" for initial equilibrium; "B" for the short-run equilibrium, "C" for the long-run equilibrium. a. Using both the IS-LM and AS-AD models graphically illustra

Business
1 answer:
Anna11 [10]3 years ago
7 0

Answer:

See explaination

Explanation:

We can look at the AD–AS model to be related to the Phillips curve model of wage or price inflation and unemployment. A special case is a horizontal AS curve which means the price level is constant. The AD curve represents the locus of equilibrium in the IS–LM model.

See attachment for the graphical representation of the models.

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