demand, short-run, and long-run aggregate supply schedules - Price level Aggregate demand (billion $) Aggregate Supply (billion $) Long run Aggregate supply (billion $) 80 1600 400 800 90 1400 600 800 100 1200 800 800 110 1000 1000 800 120 800 1200 800 130 600 1400 800 140 400 1600 800 h. Is there positive or negative cyclical unemployment ? i. Do you have to Increase or decrease GDP? j. Should the country implement
demand, short-run, and long-run aggregate supply schedules - Price level Aggregate demand (billion $) Aggregate Supply (billion $) Long run Aggregate supply (billion $) 80 1600 400 800 90 1400 600 800 100 1200 800 800 110 1000 1000 800 120 800 1200 800 130 600 1400 800 140 400 1600 800 h. Is there positive or negative cyclical unemployment ? i. Do you have to Increase or decrease GDP? j. Should the country implement
Chapter20: Aggregate Demand And Supply
Section20.A: The Self Correcting Aggregate Demand And Supply Model
Problem 5SQ
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Question
The table below shows the initial aggregate demand, short-run, and long-run aggregate supply schedules -
Price level
Aggregate demand (billion $)
Aggregate Supply (billion $)
Long run Aggregate supply (billion $)
80
1600
400
800
90
1400
600
800
100
1200
800
800
110
1000
1000
800
120
800
1200
800
130
600
1400
800
140
400
1600
800
h. Is there positive or negative cyclical unemployment ?
i. Do you have to Increase or decrease GDP?
j. Should the country implement expansionary or contractionary policy?
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