Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium Short-run aggregate supply (SRAS) when there is a recessionary gap Long-run aggregate supply (LRAS) Aggregate demand (AD) roo O O O O b O O O O O с O O O O d O O O Not Shown O
Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown. Description Short-run aggregate supply (SRAS) when there is an inflationary gap Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium Short-run aggregate supply (SRAS) when there is a recessionary gap Long-run aggregate supply (LRAS) Aggregate demand (AD) roo O O O O b O O O O O с O O O O d O O O Not Shown O
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.8P
Related questions
Question
100%
Transcribed Image Text:90
80
0
1
a
2
3
4
5
REAL GDP (Trillions of dollars)
6
7
b
Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the
graph, choose Not Shown.
Description
Short-run aggregate supply (SRAS) when there is an inflationary gap
Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium
Short-run aggregate supply (SRAS) when there is a recessionary gap
Long-run aggregate supply (LRAS)
Aggregate demand (AD)
a
O
O
O
O
O
b
O
O
O
O
O
с
O
O
O
O
O
d
O
O
O
O
Not Shown
O
O
O O
O
Transcribed Image Text:The following graph shows several aggregate demand and aggregate supply curves for an economy whose potential output is $4 trillion. The curves
are labelled a, b, c, and d. Three points on the graph are also indicated by grey stars and labelled X, Y, and Z.
PRICE LEVEL
160
150
140
130
120
110
100
90
80
0
с
1
d
a
2
3
5
REAL GDP (Trillions of dollars)
6
7
b
?
Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the
graph, choose Not Shown.
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