13. In recent months there have been • lots of pent-up demand post lockdowns (e.g. many people who are flying for the first time since the lockdowns). supply bottlenecks that are preventing some items from being shipped to stores in a timely fashion. This definitely adds to the costs of resources (production). Now consider an aggregate demand'aggregate supply model with the x-axis showing real GDP and the y-axis showing the inflation rate. These events are going to cause shifts in both curves. What result can you definitely predict from the model? a. More unemployment b. Less unemployment c. More GDP d. Higher inflation rates.
13. In recent months there have been • lots of pent-up demand post lockdowns (e.g. many people who are flying for the first time since the lockdowns). supply bottlenecks that are preventing some items from being shipped to stores in a timely fashion. This definitely adds to the costs of resources (production). Now consider an aggregate demand'aggregate supply model with the x-axis showing real GDP and the y-axis showing the inflation rate. These events are going to cause shifts in both curves. What result can you definitely predict from the model? a. More unemployment b. Less unemployment c. More GDP d. Higher inflation rates.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 8PA
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