1. Suppose that there is a positive aggregate supply shock. Which graph most accurately shows how this would affect the aggregate demand - aggregate supply model? Note that the new curve is shown in gray.

1. Suppose that there is a positive aggregate supply shock. Which graph most accurately shows how this would affect the aggregate demand - aggregate supply model? Note that the new curve is shown in gray.

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 7QR

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Question

1.
Suppose that there is a positive aggregate supply shock. Which graph most
accurately shows how this would affect the aggregate demand - aggregate
supply model? Note that the new curve is shown in gray.
a. AS curve shifts right:
b. AD curve shifts right:
c. AS curve shifts left:
d. AD curve shifts left:

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