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Suppose that because of globally adverse meteorological conditions, there are serious concerns of climbing prices in an extensive group of commodities. As a result, people now expect an acute increase in the level of input prices. The figure shows aggregate demand (AD), short‑run aggregate supply (SRAS), and long‑run aggregate supply (LRAS). Move one or more of these curves to describe the short‑run effect this would have in the economy and answer the two questions.

In the short run, price level
- decreases.
- The change is indeterminate.
- increases.

In the short run, real GDP (or aggregate output)
- increases.
- The change is indeterminate.
- decreases.

Suppose That Because Of Globally Adverse Meteorological Conditions There Are Serious Concerns Of Climbing Prices In An Extensive Group Of Commodities As A Resul class=

Sagot :

Ogorwyneidn

The way that the curves are known to affect the economy in the short run is:

  • In the short run, price level increases.
  • In the short run, real GDP (or aggregate output) increases

What is the short run agrregate supply?

This is an economics model that is used to show what happens in the econmy between the aggregate output and the price level.

In the shortrun the prices are said to be sticky, and there is a positive relation existing for GDP and the price level.

Read more on aggregate supply here: https://brainly.com/question/25749867

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