(Answered)-Suppose firms become very optimistic about future business - (2025 Updated Original AI-Free Solution

Question

1. Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment.
2. 1.Show the short-run effect of this optimism on the aggregate-demand curve.
3. 2.Which?of?the?following?reasons?could?explain?why?the?aggregate?quantity?of?output?supplied?changes??Check?all?that?apply.
   1. ????????????????????a.?Wages?are?not?sticky
   2. ????????????????????b.The?price?level?has?risen
   3. ????????????????????c.Prices?are?sticky
   4. ????????????????????d.?People?have?misperceptions?about?the?price?level

On the previous graph, show what happens to the short-run aggregate-supply curve in the long run. (Note: For now, assume there is no change in the long-run aggregate-supply curve.) The aggregate quantity of output demanded ______________