a. In the long run, aggregate supply will adjust to move the economy back to the full-employment level of output. Show this shift using the graph above. Instructions: Use the tool provided "AS" to show the movement back to full-employment output. Plot only the endpoints of the line, keeping AS, parallel to AS with the appropriate Intersection (2 points total). b. How does the new long-run equilibrium compare to the initial full-employment level before the increase in net exports? O The price level is higher, but output is lower. O The price level is lower, but output remains the same. O The price level is lower, but output is higher. O The price level is higher, but output remains the same.

a. In the long run, aggregate supply will adjust to move the economy back to the full-employment level of output. Show this shift using the graph above. Instructions: Use the tool provided "AS" to show the movement back to full-employment output. Plot only the endpoints of the line, keeping AS, parallel to AS with the appropriate Intersection (2 points total). b. How does the new long-run equilibrium compare to the initial full-employment level before the increase in net exports? O The price level is higher, but output is lower. O The price level is lower, but output remains the same. O The price level is lower, but output is higher. O The price level is higher, but output remains the same.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

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Refer to image; please show work
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Figure 34-3 PRICE LEVEL aaa" LRAS B Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS AD Refer to Figure 34-3. In Figure 34-3, point B represents a short-run equilibrium and a long-run equilibrium. short-run equilibrium, and Point A represents a long-run equilibrium. long-run equilibrium, and Point A represents a short-run equilibrium. long-run equilibrium, and Point C represents a short-run equilibrium.
PLEASE ANSWER ALL PARTS OF QUESTIONS 1 AND 2.
Give typing answer with explanation and conclusion
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