The economy is in long run equilibrium. Congress's passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply and long run aggregate supply in short run? Explain what happens to short run equilibrium price level and output. And what happens in long run, and long run equilibrium price level and output? Explain your answer using aggregate demand and aggregate supply. Format BIU
The economy is in long run equilibrium. Congress's passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply and long run aggregate supply in short run? Explain what happens to short run equilibrium price level and output. And what happens in long run, and long run equilibrium price level and output? Explain your answer using aggregate demand and aggregate supply. Format BIU
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 2CQQ
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For the first one I’m not sure if I’m wore to if the reason and for the second one I just don’t know
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