Figure 16-1 Price level LRAS SRAS E AD, AD, AD, Real GDP Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from D to C. O A to E. C to D. O C to B. O E to A.

Figure 16-1 Price level LRAS SRAS E AD, AD, AD, Real GDP Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from D to C. O A to E. C to D. O C to B. O E to A.

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 6SCQ: Suppose concerns about the size of the federal budget deficit lead the U.S. Congress to cut all...

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