Price Level O AS₁ a ASO O b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then: a surplus of real output of gh would f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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100%
Price Level
0
AS₁
a
ASO
b c
Real GDP
Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo, then:
a surplus of real output of gh yould
f represents a price level that would result in a surplus of real output of ac
f represents a price level that would result in a shortage of real output of ac
f represents a price level that would result in a surplus of real output of a
at any price level above g. a shortage of real output would occur
occur
Transcribed Image Text:Price Level 0 AS₁ a ASO b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo, then: a surplus of real output of gh yould f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur
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