Question 47The graph below shows the AD-AS diagram for Brazil.Suppose that the economy is initially in long-run equilibrium with the price level of 800.Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green).1200ADX1100-1000Price LevelADR900-800700600500RASI400*300200-100-<100LRAS200 300 400 500 600 700 800 900 1000 1100 120Real GDPWhat is the price level in the new long-run equilibrium as a result of this shift?

Aggregate demand curve represents the sum of quantity demanded by all the consumers in the economy…

Answered: 1000 Real GDP What is the price level…

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1000 Real GDP What is the price level in the new long-run equilibrium as a result of this shift? NƠ 1100 120

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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