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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 predịct from the model? a. More unemployment b. Less unemployment c. More GDP d. Higher inflation rates.

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 predịct from the model? a. More unemployment b. Less unemployment c. More GDP d. Higher inflation rates.

Economics For Today
Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter20: Aggregate Demand And Supply
Section: Chapter Questions
Problem 7SQP
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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 predịct from the model?

a. More unemployment

b. Less unemployment

c. More GDP

d. Higher inflation rates.

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