equilibrium in the economy moves from point c to point b equilibrium in the economy moves from point b to point c equilibrium in the economy moves from point c to point d equilibrium in the economy moves from point c to point a

equilibrium in the economy moves from point c to point b equilibrium in the economy moves from point b to point c equilibrium in the economy moves from point c to point d equilibrium in the economy moves from point c to point a

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 17SQ

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Question

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Starting with AD₁ and AS₁ in the graph below, an increase in capital stock
would mean the:
P
d
6
a
AD1
equilibrium in the economy moves from point c to point b
equilibrium in the economy moves from point b to point c
equilibrium in the economy moves from point c to point d
O equilibrium in the economy moves from point c to point a
AS1
AS 2
AD2
Y

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