Now show the long-run impact of the economic prosperity abroad by shifting both the aggregate demand (AD) curve and the short-run aggregate supply (AS) curve to the appropriate positions. 240 AS 200 AD 160 AS 120 80 AD 40 200 400 600 800 1000 1200 OUTPUT (Billions of dollars) PRICE LEVEL

Now show the long-run impact of the economic prosperity abroad by shifting both the aggregate demand (AD) curve and the short-run aggregate supply (AS) curve to the appropriate positions. 240 AS 200 AD 160 AS 120 80 AD 40 200 400 600 800 1000 1200 OUTPUT (Billions of dollars) PRICE LEVEL

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section9.3: The Self Regulating Economy

Problem 3ST

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Question

In the long run, as a result of the economic prosperity abroad, the price level
the quantity of output
the
natural level of output, and the unemployment rate
the natural rate of unemployment.

Now show the long-run impact of the economic prosperity abroad by shifting both the aggregate demand (AD) curve and the short-run aggregate
supply (AS) curve to the appropriate positions.
240
AS
200
AD
160
AS
120
80
AD
40
200
400
600
800
1000
1200
OUTPUT (Billions of dollars)
PRICE LEVEL

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