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.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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
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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