An important assumption in the AD/AS macro model is that when real GDP exceeds potential output, factor prices rise and the OAD curve shifts to the right. AD curve shifts to the left rapidly. O AS curve shifts to the right very rapidly. AS curve shifts to the left.
An important assumption in the AD/AS macro model is that when real GDP exceeds potential output, factor prices rise and the OAD curve shifts to the right. AD curve shifts to the left rapidly. O AS curve shifts to the right very rapidly. AS curve shifts to the left.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Fiscal Policy: The Keynesian View And Historical Development Of Macroeconomics
Section: Chapter Questions
Problem 2CQ
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