3. Suppose the president gets Congress to pass legislation that encourages investment in research and the development of new technologies. Assuming this policy leads to a positive productivity change for the U.S. economy, use aggregate demand and supply analysis to predict the effects on inflation and output. Demonstrate these effects on a graph. (Chapter 22)

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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3. Suppose the president gets Congress to pass legislation that encourages investment in
research and the development of new technologies. Assuming this policy leads to a positive
productivity change for the U.S. economy, use aggregate demand and supply analysis to
predict the effects on inflation and output. Demonstrate these effects on a graph. (Chapter
22)
Transcribed Image Text:3. Suppose the president gets Congress to pass legislation that encourages investment in research and the development of new technologies. Assuming this policy leads to a positive productivity change for the U.S. economy, use aggregate demand and supply analysis to predict the effects on inflation and output. Demonstrate these effects on a graph. (Chapter 22)
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