PA P₁ P₂ P₁ ADO AD₁ M AD₂ N W SRAS

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
100%
P₁
P3
P₂
P₁
Po
T
ADO
I
AD₁
AD₂ LRAS
1
1
I
I
O Decreased; decreased.
Increased; decreased.
O Decreased, increased.
1
1
T
N
Q₁
1
W
1
S
SRAS
Q₂ Q3
Real Domestic Output, GDP
Refer to the above diagram. Assume aggregate demand increased from ADo to AD₂.
and the price level
As a result of the shift, actual GDP
Transcribed Image Text:P₁ P3 P₂ P₁ Po T ADO I AD₁ AD₂ LRAS 1 1 I I O Decreased; decreased. Increased; decreased. O Decreased, increased. 1 1 T N Q₁ 1 W 1 S SRAS Q₂ Q3 Real Domestic Output, GDP Refer to the above diagram. Assume aggregate demand increased from ADo to AD₂. and the price level As a result of the shift, actual GDP
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