Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Textbook Question
Chapter 26, Problem 21P

Use Table 26.3 to answer the following questions.

1. Sketch an aggregate supply and aggregate demand diagram.
2. What is the equilibrium output and price level?
3. If aggregate demand shifts right, what is equilibrium output?
4. If aggregate demand shifts left, what is equilibrium output?
5. In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?

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