Figure: Aggregate Demand and Aggregate Supply 1 Inflation rate 10 9 8 7 6 5 4 3 2 1 0 0 A. B. 1 O c. D. LRAS C 2 3 4 5 6 7 8 D SRAS AD If the money supply has increased, the long-run equilibrium in this economy will occur at intersection: Real growth rate 9 10

ENGR.ECONOMIC ANALYSIS
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Figure: Aggregate Demand and Aggregate Supply 1
Inflation
rate
10
9
87
6
5
4
3
2
0
0
B.
1
C.
D.
2
3
A
LRAS
C
4 5
B
6
7 8
D
SRAS
AD
9
If the money supply has increased, the long-run equilibrium in this
Real
10
growth rate
economy
will occur at intersection:
Transcribed Image Text:Figure: Aggregate Demand and Aggregate Supply 1 Inflation rate 10 9 87 6 5 4 3 2 0 0 B. 1 C. D. 2 3 A LRAS C 4 5 B 6 7 8 D SRAS AD 9 If the money supply has increased, the long-run equilibrium in this Real 10 growth rate economy will occur at intersection:
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