In a carefully labelled diagram, draw an economic equilibrium in the Keynesian range of the aggregate supply curve. 2. Describe a situation that would cause the AD curve to shift to the right. 3.Draw the new AD curve in your diagram above and mark the new equilibrium.

In a carefully labelled diagram, draw an economic equilibrium in the Keynesian range of the aggregate supply curve. 2. Describe a situation that would cause the AD curve to shift to the right. 3.Draw the new AD curve in your diagram above and mark the new equilibrium.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 17P

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Question

In a carefully labelled diagram, draw an economic equilibrium in the Keynesian range of the aggregate supply curve.

2. Describe a situation that would cause the AD curve to shift to the right.

3.Draw the new AD curve in your diagram above and mark the new equilibrium.

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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