In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Shortrun aggregate supply longrun aggregate supply 30 $1395 $1125 $1200 40 $1330 $1150 $1200 50 $1265 $1175 $1200 60 $1200 $1200 $1200 70 $1135 $1225 $1200 80 $1070 $1250 $1200 90 $1005 $1275 $1200 If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000? Cyclical unemployment/Inflationary pressures
In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Shortrun aggregate supply longrun aggregate supply 30 $1395 $1125 $1200 40 $1330 $1150 $1200 50 $1265 $1175 $1200 60 $1200 $1200 $1200 70 $1135 $1225 $1200 80 $1070 $1250 $1200 90 $1005 $1275 $1200 If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000? Cyclical unemployment/Inflationary pressures
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 11E
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In 1999, the economy of Mistania had an aggregate
Price Level | Aggregate Demand | Shortrun aggregate supply | longrun aggregate supply |
30 | $1395 | $1125 | $1200 |
40 | $1330 | $1150 | $1200 |
50 | $1265 | $1175 | $1200 |
60 | $1200 | $1200 | $1200 |
70 | $1135 | $1225 | $1200 |
80 | $1070 | $1250 | $1200 |
90 | $1005 | $1275 | $1200 |
If Mistania decreases spending, would this more likely result in cyclical
Cyclical unemployment/Inflationary pressures
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Author:
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Publisher:
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