7. The long-run aggregate supply curve and short-run adjustments Suppose an economy's short-run aggregate supply curve (SRAS), current equilibrium aggregate price level (P₁), and real GDP (Q₁) are shown on the graph that follows. The economy currently has Natural Real GDP (QN) of $6 trillion. Use this information to place the orange long-run aggregate supply curve (LRAS, square symbols) in the correct position on the graph. PRICE LEVEL a 6 Q₁ REAL GDP (Trillions of dollars) SRAS 10 1 LRAS
7. The long-run aggregate supply curve and short-run adjustments Suppose an economy's short-run aggregate supply curve (SRAS), current equilibrium aggregate price level (P₁), and real GDP (Q₁) are shown on the graph that follows. The economy currently has Natural Real GDP (QN) of $6 trillion. Use this information to place the orange long-run aggregate supply curve (LRAS, square symbols) in the correct position on the graph. PRICE LEVEL a 6 Q₁ REAL GDP (Trillions of dollars) SRAS 10 1 LRAS
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The equilibrium A₁, shown on the graph, reveals that real GDP (Q1) is
time, shifting SRAS
Natural Real GDP. As a result, wages will
over](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39d223ce-8c4a-480a-b315-93c373df78bd%2Fb432227a-c547-4ac1-a8b7-6ec490e01336%2Fclqpys_processed.png&w=3840&q=75)
Transcribed Image Text:The equilibrium A₁, shown on the graph, reveals that real GDP (Q1) is
time, shifting SRAS
Natural Real GDP. As a result, wages will
over
![7. The long-run aggregate supply curve and short-run adjustments
Suppose an economy's short-run aggregate supply curve (SRAS), current equilibrium aggregate price level (P₁), and real GDP (Q1) are shown on
the graph that follows. The economy currently has Natural Real GDP (QN) of $6 trillion.
Use this information to place the orange long-run aggregate supply curve (LRAS, square symbols) in the correct position on the graph.
20
PRICE LEVEL
0
2
4
6 Q₁
REAL GDP (Trillions of dollars)
8
SRAS
10
LRAS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39d223ce-8c4a-480a-b315-93c373df78bd%2Fb432227a-c547-4ac1-a8b7-6ec490e01336%2F9c7nhh_processed.png&w=3840&q=75)
Transcribed Image Text:7. The long-run aggregate supply curve and short-run adjustments
Suppose an economy's short-run aggregate supply curve (SRAS), current equilibrium aggregate price level (P₁), and real GDP (Q1) are shown on
the graph that follows. The economy currently has Natural Real GDP (QN) of $6 trillion.
Use this information to place the orange long-run aggregate supply curve (LRAS, square symbols) in the correct position on the graph.
20
PRICE LEVEL
0
2
4
6 Q₁
REAL GDP (Trillions of dollars)
8
SRAS
10
LRAS
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