LRAS ADn SRAS ADi Pn En Neoclassical zone ADk Ei Pi Intermediate zone Pk Ek Keynesian zone Yk Yi Yn Real GDP Say's Law states that supply creates its own demand. In the neoclassical zone on the graph above, supply is at its potential GDP, at full capacity. When aggregate supplies have reached their full potential output, what happens if demand shifts to the right? Select one: a. The GDP deflator shifts up and to the left. b. The aggregate supply outputs increase and LRAS shifts to the right. c. The aggregate demand prices increase as AD shifts to the right. d. The aggregate demand prices decrease as AD shifts to the right. Price Level

LRAS ADn SRAS ADi Pn En Neoclassical zone ADk Ei Pi Intermediate zone Pk Ek Keynesian zone Yk Yi Yn Real GDP Say's Law states that supply creates its own demand. In the neoclassical zone on the graph above, supply is at its potential GDP, at full capacity. When aggregate supplies have reached their full potential output, what happens if demand shifts to the right? Select one: a. The GDP deflator shifts up and to the left. b. The aggregate supply outputs increase and LRAS shifts to the right. c. The aggregate demand prices increase as AD shifts to the right. d. The aggregate demand prices decrease as AD shifts to the right. Price Level

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply

Section: Chapter Questions

Problem 20E

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Similar questions

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