In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule:Price LevelAggregate DemandShortrun aggregate supplylongrun aggregate supply30$1395$1125$120040$1330$1150$120050$1265$1175$120060$1200$1200$120070$1135$1225$120080$1070$1250$120090$1005$1275$1200If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000?Cyclical unemployment/Inflationary pressures

Aggregate demand < short run and long run aggregate supply which implies there is less demand and…

Answered: In 1999, the economy of Mistania had an…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the following schedule:

Price Level	Aggregate Demand	Shortrun aggregate supply	longrun aggregate supply
30	$1395	$1125	$1200
40	$1330	$1150	$1200
50	$1265	$1175	$1200
60	$1200	$1200	$1200
70	$1135	$1225	$1200
80	$1070	$1250	$1200
90	$1005	$1275	$1200

If Mistania decreases spending, would this more likely result in cyclical unemployment or inflationary pressures in the following year - i.e, in 2000?

Cyclical unemployment/Inflationary pressures

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