Answered: In Figure 2 above, what are the factors…

In Figure 2 above, what are the factors that may cause the aggregate demand to shift from AD to AD1? What is the difference between demand-pull inflation, cost-push inflation and recession?

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 Figure 2 above, what are the factors that may cause the aggregate demand to
shift from AD to AD1? What is the difference between demand-pull inflation, cost-push
inflation and recession?

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Figure 9-2 Price Level LRAS RGDP, RGDPR RGDP SRAS, SRAS AD Refer to Figure 9-2. Which of the following is indicated by a shift from SRASO) to SRAS 1? Question 23 options: cost-push inflation increasing SRAS demand-pull inflation increasing aggregate demand