The economy of Winterspring is currently in an equilibrium depicted by point E, on the graph. Economy of Winterspring Now suppose that there is a demand shock in the enonomy and the AD curve shifts from AD, to AD, as shown by the graph. 2.400- 2.200- 2.000 1.800 1,600- 1.400 Suppose that there is no monctary validation. Using the point drawing tool, show the short-run equilibrium that the economy will move into in this case. Label this point E, Carotully follow the instructions above, and only draw the roquirod objects. 1200 1.00 Foi 60- 400 AD. 200- AD 1.000 3,000 5,000 7.000 9,000 11,000 Real GDP (Y) Price Level (P)
The economy of Winterspring is currently in an equilibrium depicted by point E, on the graph. Economy of Winterspring Now suppose that there is a demand shock in the enonomy and the AD curve shifts from AD, to AD, as shown by the graph. 2.400- 2.200- 2.000 1.800 1,600- 1.400 Suppose that there is no monctary validation. Using the point drawing tool, show the short-run equilibrium that the economy will move into in this case. Label this point E, Carotully follow the instructions above, and only draw the roquirod objects. 1200 1.00 Foi 60- 400 AD. 200- AD 1.000 3,000 5,000 7.000 9,000 11,000 Real GDP (Y) Price Level (P)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 59CTQ: Review the problem in the Work It Out titled Interpreting the AD/AS Model. Like the information...
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Transcribed Image Text:The economy of Winterspring is currently in an equilibrium depicted by point E, on the graph.
Economy of Winterspring
Now suppose that there is a demand shock in the economy and the AD curve shifts from AD, to AD,, as shown by
the graph.
2400-
2.200-
AS
Suppose that there is no monetary validation.
2.000-
1.800-
Using the point drawing tool, show the short-run equilibrium that the economy will move into in this case. Label this
point E,.
A 1,600-
1400
Carclully follow the instructions above, and only draw the required objects.
1.200
900
600
AD
3,000 5,000 7.c00 9.c00
Real GDP (Y)
1,000
11,000
Price Level (P)
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