Exhibit 11.2 Potential output Price level LRAS SRAS P2 P3 AD' AD* AD Real GDP(trillions of dollars) Q, Q, Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. A leftward shift of the short-run aggregate supply curve would return the economy to potential output at point e". point e. point e* a point higher than e". a point between e" and e*

Exhibit 11.2 Potential output Price level LRAS SRAS P2 P3 AD' AD* AD Real GDP(trillions of dollars) Q, Q, Refer to Exhibit 11.2, which shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. A leftward shift of the short-run aggregate supply curve would return the economy to potential output at point e". point e. point e* a point higher than e". a point between e" and e*

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 8P

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Similar questions

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