I'm just confused about C. 15%24ZOOM- 1Week 9 HomeworkThe imaginary country of Haris Island has the aggregate supply and aggregate demand curves asshown in Table below.Price LevelADAS700200120325009570096620a. Plot the AD/AS diagram with the axes labeled. Identify the equilibrium.b. Imagine that consumers begin to lose confidence about the state of the economy, and so ADbecomes lower by 275 at every price level. Identify the new aggregate equilibrium.c. How will the shift in AD affect the original output, price level, and employment?MICMICF7F8F10レレヨF1287.RH.B.

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c. How will the shift in AD affect the original output, price level, and employment?

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 59CTQ: Review the problem in the Work It Out titled Interpreting the AD/AS Model. Like the information...

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Question

I'm just confused about C.

15
%24
ZOOM
- 1
Week 9 Homework
The imaginary country of Haris Island has the aggregate supply and aggregate demand curves as
shown in Table below.
Price Level
AD
AS
700
200
120
325
009
570
096
620
a. Plot the AD/AS diagram with the axes labeled. Identify the equilibrium.
b. Imagine that consumers begin to lose confidence about the state of the economy, and so AD
becomes lower by 275 at every price level. Identify the new aggregate equilibrium.
c. How will the shift in AD affect the original output, price level, and employment?
MIC
MIC
F7
F8
F10
レレヨ
F12
8
7.
R
H.
B.

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