On the following graph, shift a curve or adjust the point reflect the short-run effect of the rise in consumer spending. (? Inflation Rate In the short run, inflation LRPC Unemployment Rate SRPC and unemployment SRPC After the expansion is over, the economy faces a O Short-Run Outcome LRPC Now suppose that over time, expected inflation changes in the same direction that actual inflation changes. On both of the previous graphs, shift the appropriate curve or curves to reflect the change that brings the economy to its long-run state. set of inflation-unemployment combinations.
On the following graph, shift a curve or adjust the point reflect the short-run effect of the rise in consumer spending. (? Inflation Rate In the short run, inflation LRPC Unemployment Rate SRPC and unemployment SRPC After the expansion is over, the economy faces a O Short-Run Outcome LRPC Now suppose that over time, expected inflation changes in the same direction that actual inflation changes. On both of the previous graphs, shift the appropriate curve or curves to reflect the change that brings the economy to its long-run state. set of inflation-unemployment combinations.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:On the following graph, shift a curve or adjust the point to reflect the short-run effect of the rise in consumer spending.
LRPC
A
SRPC
Unemployment Rate
Inflation Rate
In the short run, inflation
and unemployment
SRPC
O
After the expansion is over, the economy faces a
Short-Run Outcome
LRPC
Now suppose that over time, expected inflation changes in the same direction that actual inflation changes.
On both of the previous graphs, shift the appropriate curve or curves to reflect the change that brings the economy its long-run state.
set of inflation-unemployment combinations.
Transcribed Image Text:3. Problems and Applications Q3
Suppose that a rise in consumer spending causes an expansion.
On the following graph, shift one or both curves to reflect the short-run effect of the rise in consumer spending.
Price Level
Aggregate Supply
Aggregate Demand
Quantity of Output
Aggregate Demand
Aggregate Supply
(?)
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