Q. Elucidate why an upward sloping aggregate supply curve is thought to weaken the impact of a rightward shift of the aggregate demand curve generated by an increase in government spending in the short run?
Q. Suppose we have two goods. The price of good A is $10 and the price of good B is $15. The income is $30. How would a diagram look like if we construct it with the quantities on the X - and Y-axes. What would be the budget line be