What causes the economy to be in disequilibrium for a while? How does an economy adjust back to equilibrium? What does it mean to graph the effects of an un anticipated increase in the price level on the AD-AS (aggregate demand/supply) graph?

What causes the economy to be in disequilibrium for a while? How does an economy adjust back to equilibrium? What does it mean to graph the effects of an un anticipated increase in the price level on the AD-AS (aggregate demand/supply) graph?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 18QP

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Question

What causes the economy to be in disequilibrium for a while?
How does an economy adjust back to equilibrium?
What does it mean to graph the effects of an un anticipated increase in the price level on the AD-AS (aggregate demand/supply) graph?

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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