True or false: Emphasis is given to short-run aggregate supply because this is the version of aggregate supply that can explain changes in output and prices.

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07-04-2022
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True or false: Emphasis is given to short-run aggregate supply because this is the version of aggregate supply that can explain changes in output and prices.

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amcool amcool · Answer 1 · 2022-04-11T10:58:01+02:00

It is true that short-run aggregate supply is emphasised because it is the version of aggregate supply that can explain changes in output and prices.

Effect of Short-Run and Long-Run Aggregate Supply on Output and Prices

The above statement is true because the short-run aggregate supply can be used to provide explanation for variations in output and prices.

The other version is the long-run aggregate supply, however, it cannot and will not provide explanation for price and output variations at the same time.

This is the reason short-run aggregate supply is always emphasized.

Learn more about short-run aggregate supply here: https://brainly.com/question/24130128.