AC.ADd 7. Draw the macroeconomy in equilibrium (snowflake). What happens when aggregate demand increases? Show on graph. Label new short run equilibrium E2. What state is this economy in? aggieg ote demond Inceases LRAS SRAS' .when SIAS AD Shifts nght, Boom or peak, Jowe, thow watnal rate a) Give an example of something that could have caused this. b) What happened to GDP and price level? ) In this scenario, what do we call the difference between actual GDP and potentialGDP? d) At E2, what is the unemployment rate relative to the natural rate of unemployment? e) How would this economy fix itself? Show on on graph. Label the new equilibrium E3. Briefly explain.
AC.ADd 7. Draw the macroeconomy in equilibrium (snowflake). What happens when aggregate demand increases? Show on graph. Label new short run equilibrium E2. What state is this economy in? aggieg ote demond Inceases LRAS SRAS' .when SIAS AD Shifts nght, Boom or peak, Jowe, thow watnal rate a) Give an example of something that could have caused this. b) What happened to GDP and price level? ) In this scenario, what do we call the difference between actual GDP and potentialGDP? d) At E2, what is the unemployment rate relative to the natural rate of unemployment? e) How would this economy fix itself? Show on on graph. Label the new equilibrium E3. Briefly explain.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 6CQQ
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