908001a2345REAL GDP (Trillions of dollars)67bIdentify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on thegraph, choose Not Shown.DescriptionShort-run aggregate supply (SRAS) when there is an inflationary gapShort-run aggregate supply (SRAS) when the economy is at long-run equilibriumShort-run aggregate supply (SRAS) when there is a recessionary gapLong-run aggregate supply (LRAS)Aggregate demand (AD)aOOOOObOOOOOсOOOOOdOOOONot ShownOOO OO The following graph shows several aggregate demand and aggregate supply curves for an economy whose potential output is $4 trillion. The curvesare labelled a, b, c, and d. Three points on the graph are also indicated by grey stars and labelled X, Y, and Z.PRICE LEVEL16015014013012011010090800с1da235REAL GDP (Trillions of dollars)67b?Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on thegraph, choose Not Shown.

"Aggregate demand curve depicts the total amount of final commodities demanded in a country at a…

Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium Short-run aggregate supply (SRAS) when there is a recessionary gap Long-run aggregate supply (LRAS) Aggregate demand (AD) roo O O O O b O O O O O с O O O O d O O O Not Shown O

Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium Short-run aggregate supply (SRAS) when there is a recessionary gap Long-run aggregate supply (LRAS) Aggregate demand (AD) roo O O O O b O O O O O с O O O O d O O O Not Shown O

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1QR

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The imaginary country of Harris Island has the aggregate supply and aggregate demand curves as Table shows. Price Level: AD/AS Price Level AD AS 100 800 300 120 700 425 140 600 600 160 500 670 180 400 720 Plot the AD/AS diagram (You don't have to submit the plot, but I recommend doing it as it will help you with this problem). Identify the equilibrium. Blank #1 - Equilibrium Price Level Blank #2 - Equilibrium GDP Blank #3 - Would you expect unemployment in this economy to be relatively high or low? Blank #4 - Would you expect concern about inflation in this economy to be relatively high or low? Imagine that consumers begin to lose confidence about the state of the economy, and so AD becomes lower by 275 at every price level. Blank #5 - What is the new equilibrium GDP? Blank #6 - What is the new equilibrium Price Level? How will the shift in AD affect (answer is rise or fall)... Blank #7 - the original output? Blank #8 - the price…
PRICE LEVEL 160 150 140 130 120 110 100 90 80 0 с 1 d X a 2 3 4 5 REAL GDP (Trillions of dollars) 6 + 7 b H 8 (?) Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is a recessionary gap Aggregate demand (AD) Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is in long-run equilibrium Long-run aggregate supply (LRAS) a O b O O O с O O O O d O O Not Shown
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