initally, the chort un aggregate supply cure is SAS and e te dand esAC LAS SAS, 115 SAS 110 105 100 95 0.8 10 12 Reol GOP ilions ol 2005 dollan Using the above graph answer the following questions 1. Some events change aggregate demand bom ADO to ADI dently hw events that coa o the chn demand. What is the equilibrium after aggregute demand changed/it petental S1 e macroeconomic equilbrium? 2 Some events change aggregate supply hrom SASO to SAST. Recogre hwo everts at cd he eet t ungh supply. What is the equlibrium after aggregate supply changed? t potertia GPn $1 tllion, do the manuny hoe an inflationary gap, a recessionary gan or no output gap? 3. Some events change aggregate demand from ADO to ADI and agggale uply um SASO O SAS S macroeconomic equlibrium Price level
initally, the chort un aggregate supply cure is SAS and e te dand esAC LAS SAS, 115 SAS 110 105 100 95 0.8 10 12 Reol GOP ilions ol 2005 dollan Using the above graph answer the following questions 1. Some events change aggregate demand bom ADO to ADI dently hw events that coa o the chn demand. What is the equilibrium after aggregute demand changed/it petental S1 e macroeconomic equilbrium? 2 Some events change aggregate supply hrom SASO to SAST. Recogre hwo everts at cd he eet t ungh supply. What is the equlibrium after aggregate supply changed? t potertia GPn $1 tllion, do the manuny hoe an inflationary gap, a recessionary gan or no output gap? 3. Some events change aggregate demand from ADO to ADI and agggale uply um SASO O SAS S macroeconomic equlibrium Price level
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 20E
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