The economy starts out on the curves AD, and SAS, Suppose that people expect deflation (a falling price level), but aggregate demand remains at AD Show what happens to the short-run and long-run aggregate supply curve. Label Price level (GDP deflator, 2009 - 100) LAS 240 200 the new curve. SAS Draw a point at the new macroeconomic equilibrium. 160 When it becomes obvious to everyone that the deflation is not going to occur, 120 120 A. long-run aggregate supply increases B. the money wage rate falls further C. aggregate demand decreases OD. the money wage rate rises and the short-run aggregate supply curve 80 AD 40 returns to its original position 10 11 12 13 14 15 Real GDP (rilions of 2009 dollars) >>> Draw only the objects specified in the question.
The economy starts out on the curves AD, and SAS, Suppose that people expect deflation (a falling price level), but aggregate demand remains at AD Show what happens to the short-run and long-run aggregate supply curve. Label Price level (GDP deflator, 2009 - 100) LAS 240 200 the new curve. SAS Draw a point at the new macroeconomic equilibrium. 160 When it becomes obvious to everyone that the deflation is not going to occur, 120 120 A. long-run aggregate supply increases B. the money wage rate falls further C. aggregate demand decreases OD. the money wage rate rises and the short-run aggregate supply curve 80 AD 40 returns to its original position 10 11 12 13 14 15 Real GDP (rilions of 2009 dollars) >>> Draw only the objects specified in the question.
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
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 3CQ
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