b. Starting from the Short Run Equilibrium shown on your1st diagram (2020), show graphically how the Automatic Mechanism will move the economy to a new Long-Run Equilibrium. Label everything. c. Explain the changes in your diagram. Be very specific. If you shift a curve, explain why. If you move along a curve, explain why. The answer is in the PPT.
b. Starting from the Short Run Equilibrium shown on your1st diagram (2020), show graphically how the Automatic Mechanism will move the economy to a new Long-Run Equilibrium. Label everything. c. Explain the changes in your diagram. Be very specific. If you shift a curve, explain why. If you move along a curve, explain why. The answer is in the PPT.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 4SQ
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Question
b. Starting from the Short Run Equilibrium shown on your1st diagram (2020), show graphically how the Automatic Mechanism will move the economy to a new Long-Run Equilibrium. Label everything. c. Explain the changes in your diagram. Be very specific. If you shift a curve, explain why. If you move along a curve, explain why. The answer is in the PPT.
![113.4
GDP Deflator
YA = 18,990
mew
LRAS20200
Y²= 19,399
SRAS (PE=113.4)
AD
Real GDP](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc8cdf1-1696-4e19-9eab-8b0e4cff661f%2F2306cf2f-dcd1-41f0-a8a1-02716db89a27%2Fvzlb7k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:113.4
GDP Deflator
YA = 18,990
mew
LRAS20200
Y²= 19,399
SRAS (PE=113.4)
AD
Real GDP
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