The following graph shows the (A) Keynesian, (B) monetarist, and (C) consensus hybrid AS curves, all intersecting AD at point E. Price Level (Average Price Level per unit output) AS (B) E AS (C) AS (A) (b) The biggest increase in prices? Keynesian (A) Consensus (C) Monetarist (B) AD Output (Real GDP per period) If AD shifts rightward, which AS curve (A, B, or C) generates (a) The biggest increase in output? Consensus (C) Monetarist (B) Keynesian (A)

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter20: Monetary Policy
Section20.A: Policy Disputes Using The Self Correcting Aggregate Demand And Supply Model
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The following graph shows the (A) Keynesian, (B) monetarist, and (C) consensus hybrid AS curves, all intersecting AD at point E.
(Average Price Level per unit output)
Price Level
AS (C)
AS (B)
K
AS (A)
(b) The biggest increase in prices?
Keynesian (A)
Consensus (C)
Monetarist (B)
AD
Output (Real GDP per period)
If AD shifts rightward, which AS curve (A, B, or C) generates
(a) The biggest increase in output?
Consensus (C)
Monetarist (B)
Keynesian (A)
Transcribed Image Text:The following graph shows the (A) Keynesian, (B) monetarist, and (C) consensus hybrid AS curves, all intersecting AD at point E. (Average Price Level per unit output) Price Level AS (C) AS (B) K AS (A) (b) The biggest increase in prices? Keynesian (A) Consensus (C) Monetarist (B) AD Output (Real GDP per period) If AD shifts rightward, which AS curve (A, B, or C) generates (a) The biggest increase in output? Consensus (C) Monetarist (B) Keynesian (A)
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