11.3 THE FINAL EQUILIBRIUM LEARNING OBJECTIVE: Explain why the intersection of the AD and AS curves is an equilibrium point. 3.1 Illustrate each of the following situations with a graph showing AS and AD curves, and explain what happens to the equilibrium values of the price level and aggregate output: a. A decrease in G with the money supply held constant by the Fed b. A decrease in the price of oil with no change in govern- 1200 ment spending c. An increase in Z with no change in government spending d. An increase in the price of oil and a decrease in G

11.3 THE FINAL EQUILIBRIUM LEARNING OBJECTIVE: Explain why the intersection of the AD and AS curves is an equilibrium point. 3.1 Illustrate each of the following situations with a graph showing AS and AD curves, and explain what happens to the equilibrium values of the price level and aggregate output: a. A decrease in G with the money supply held constant by the Fed b. A decrease in the price of oil with no change in govern- 1200 ment spending c. An increase in Z with no change in government spending d. An increase in the price of oil and a decrease in G

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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