Explain why the following statements are false.1."The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods."2."The long-run aggregate-supply curve is vertical because economic forces do not affect long-run aggregate supply."3."If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal."4."Whenever the economy enters a recession, its long-run aggregate-supply curve shifts to the left."

1. It is FALSE. 2. It is FALSE. 3. It is FALSE. 4. It is FALSE.

Explanation:

1. If firms adjusted prices quickly and if sticky prices were the only possible cause for the upward slope of the short run aggregate supply curve the the short run aggreagte supply would be vertical, not horizontal. the short run aggregate supply curve would be horizontal only if prices were completely fixed.

2.the long run aggregate supply curve is vertical because it is not affected the pirce level.

3. if firms adjusted prices quickly and if sticky prices were the only possible cause for the upward slope of the short run aggregate supply curve the the short run asupply curve would be vertical.

4. An economy would enter a recessioon, if either the aggregate demand curve or the short run aggregate supply curve shifts to the left. The economic recession refers to a situation when there is a s decline  in the ecnomic indicators.

answer; ///blank(1); rate-buster; blank(2) systematic soldiering;