Question

When the economy is on the short-run aggregate supply curve and to the left of the long-run aggregate supply curve, actual aggregate output will eventually equal potential output as:_________

Answer 1

Answer:

Nominal salaries decrease and the short term aggregate goes up to the right.

Explanation:

Companies normally make decisions about the amount of supplies in which they invest according to the profits that they expect to obtain in the future according to the variables of their economic activity. The profits for the company will be also determined by the price of the products or services the company trades and the price of the supplies necessary for such activities.