1. Which of the four gap scenarios apply under the following circumstances? 2. Why does it apply (please explain the reasoning behind your decision)? 3. Write out the appropriate AD/AS notation (e.g. 0+-+). (Alternatively you can graph out the notional model on a separate sheet of paper and send it to me as an email attachment.) Inventories begin to build to a global economic slowdown caused by a trade war between China, Europe and the US. US exporting companies cut back on capital investments.
1. Which of the four gap scenarios apply under the following circumstances? 2. Why does it apply (please explain the reasoning behind your decision)? 3. Write out the appropriate AD/AS notation (e.g. 0+-+). (Alternatively you can graph out the notional model on a separate sheet of paper and send it to me as an email attachment.) Inventories begin to build to a global economic slowdown caused by a trade war between China, Europe and the US. US exporting companies cut back on capital investments.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:1. Which of the four gap scenarios apply under the following circumstances?
2. Why does it apply (please explain the reasoning behind your decision)?
3. Write out the appropriate AD/AS notation (e.g. 0+-+). (Alternatively you can graph out the notional model on
a separate sheet of paper and send it to me as an email attachment.)
Inventories begin to build to a global economic slowdown caused by a trade war between China, Europe and the
US. US exporting companies cut back on capital investments.
Transcribed Image Text:1. Which of the four gap scenarios apply under the following circumstances?
2. Why does it apply (please explain the reasoning behind your decision)?
3. Write out the appropriate AD/AS notation (e.g. 0+-+). (Alternatively you can graph out the notional model on
a separate sheet of paper and send it to me as an email attachment.)
The drought in California and the Midwest reaches record extremes and leads to major agricultural crop losses.
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