a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right. b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph. c) What will be the effect of such events on the level of prices and the real outcome in the long run? Update your graph
a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right. b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph. c) What will be the effect of such events on the level of prices and the real outcome in the long run? Update your graph
Chapter14: Aggregate Demand And Supply
Section: Chapter Questions
Problem 6SQP
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Question
Aggregate demand and
of Economics” by N. Gregory Mankiw
a) List the components of country’s GDP in an open economy. For each component, provide an
example of an event that would cause a shift of the aggregate demand curve to the right.
b) What will be the effect of such events on the level of prices and the real outcome in the short
run? Provide a graph.
c) What will be the effect of such events on the level of prices and the real outcome in the long
run? Update your graph
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