S09.,hello, I know for sure that answer "positive supply shock; LRAS to the right,"is wrong. ? Demand pull inflation is a situation in which aeconomy to overheat. Rising input prices then pusheslong-run equilibrium.positive demand shock; SRAS to the left,negative supply shock; LRAS to the left,negative demand shock; SRAS to the right,positive supply shock; LRAS to the right,causes theback to

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S09.,hello, I know for sure that answer "positive supply shock; LRAS to the right," is wrong. ?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model

Section: Chapter Questions

Problem 12CQ

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S09.,hello, I know for sure that answer "positive supply shock; LRAS to the right,"

is wrong. ?

Demand pull inflation is a situation in which a
economy to overheat. Rising input prices then pushes
long-run equilibrium.
positive demand shock; SRAS to the left,
negative supply shock; LRAS to the left,
negative demand shock; SRAS to the right,
positive supply shock; LRAS to the right,
causes the
back to

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Suppose that your economy is in long run equilibrium. The aggregate demand and aggregate supply in the market is represented by the following functions: AD:= 360 – 4Y AS: P = 20 + 4Y Something occurs in the economy and the aggregate demand changes to: AD: P = 400 – 4Y Calculate the inflation rate that occurs with the change in aggregate demand.
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