I feel like I got the graph wrong, but at the same time, I feel like I did it correctly. A technological improvement raises productivity.On the following graph, indicate the short-run and long-run effects of this change on the economy, assuming policymakers take no action.(?)AS2LRASAS,Aggregate DemandAggregate SupplyAD2LRASAD1Quantity of Outputand outputincreasesincreasesIn the short run, the price levelhighercompared to the initial equilibrium prior to the change.higherand output will beIn the long run, the price level will bePrice Level

in the short run, the price level increases output level increases because an increase in demand…

A technological improvement raises productivity. On the following graph, indicate the short-run and long-run effects of this change on the economy, assuming policymakers take no action. AS, LRAS AS, Aggregate Demand Aggregate Supply -Δ AD2 LRAS AD, Quantity of Output In the short run, the price level increases and output increases In the long run, the price level will be higher v and output will be higher compared to the initial equilibrium prior to the change Price Level

A technological improvement raises productivity. On the following graph, indicate the short-run and long-run effects of this change on the economy, assuming policymakers take no action. AS, LRAS AS, Aggregate Demand Aggregate Supply -Δ AD2 LRAS AD, Quantity of Output In the short run, the price level increases and output increases In the long run, the price level will be higher v and output will be higher compared to the initial equilibrium prior to the change Price Level

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...

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