Aggregate supply! What is the shape of Keynesian aggregate supply curve. In a short run free market capitalist economy the national income and employment is determined by the aggregate supply and aggregate demand.
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A demand curve is the graphical representation of the demand schedule for a commodity. It is the graphic statement of an individual buyer’s reaction on amount demanded at a given price in the given point of time.
Some of the major reasons for this behavior of the demand curve, that is, of the normal law of demand, are listed below. One of the causes of downward sloping demand curve is provided by the law of diminishing marginal utility. We know that when a consumer buys additional units of a good, its marginal […]