The table shows the aggregate demand and short-run aggregate supply schedules of Chamber Island in which potential GDP is 510 billion. Real GDP Real GDP supplied Price demanded in the short run level (billions of 2007 dollars per year) 90 550 470 100 530 490 Exports decrease unexpectedly, shifling aggregate demand by $40 billion at all price levels. As a result, the price level 110 510 510 will be Chamber Island has experienced 120 490 530 A. a one-time change in the price level B. a demand-pull deflation C. a cost-push deflation D. a demand-pull nflation 130 470 550 O E. a cost-push inflation OO
The table shows the aggregate demand and short-run aggregate supply schedules of Chamber Island in which potential GDP is 510 billion. Real GDP Real GDP supplied Price demanded in the short run level (billions of 2007 dollars per year) 90 550 470 100 530 490 Exports decrease unexpectedly, shifling aggregate demand by $40 billion at all price levels. As a result, the price level 110 510 510 will be Chamber Island has experienced 120 490 530 A. a one-time change in the price level B. a demand-pull deflation C. a cost-push deflation D. a demand-pull nflation 130 470 550 O E. a cost-push inflation OO
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter33: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 4CQQ
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