Use the green line (triangle symbols) to show the long-run aggregate supply curve (LRAS;) after the major production innovations. LRAS, 195 185 175 LRAS, 155 New Equibrium 145 135 125 10 AD, AD, AD 96 10.0 105 110 s 12.0 12 130 135 140 145 50 REAL GOP (Triions of dollars) According to real business cycle theonsts, consumption resuiting from the major production innovations incentivizes businesses to borrow from banks, causing the money supply to As a result, the aggregate demand curve shifts to the Use the black horizontal drop line (plus symbol) to indicate the economy's new equilibrium output and price level after the major production PRICE LEVEL

Use the green line (triangle symbols) to show the long-run aggregate supply curve (LRAS;) after the major production innovations. LRAS, 195 185 175 LRAS, 155 New Equibrium 145 135 125 10 AD, AD, AD 96 10.0 105 110 s 12.0 12 130 135 140 145 50 REAL GOP (Triions of dollars) According to real business cycle theonsts, consumption resuiting from the major production innovations incentivizes businesses to borrow from banks, causing the money supply to As a result, the aggregate demand curve shifts to the Use the black horizontal drop line (plus symbol) to indicate the economy's new equilibrium output and price level after the major production PRICE LEVEL

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1P

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Similar questions

In the AD/AS model, what prevents the economy from achieving equilibrium at potential output?
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