Price level, P A Po Aggregate output (income), Y Yo Ly ☑

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section15.3: The Components Of Gdp
Problem 3QQ
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The figure to the right contains a point indicating the​ economy's initial price and aggregate output
​(Upper P 0P0​,Upper Y 0Y0​)
combination.
 
Suppose that the price level rises such that
P Subscript 1
​ >
P Subscript 0.
 
Using the point drawing​ tool, identify a potential location for the​ economy's new price and aggregate output
​(Upper P 1P1​,Upper Y 1Y1​)
combination. Label this point
B.
 
 Using the line drawing​ tool, draw the aggregate demand curve through these points. Properly label the line.
 
 
picture is attached 
Price level, P
A
Po
Aggregate output (income), Y
Yo
Ly
☑
Transcribed Image Text:Price level, P A Po Aggregate output (income), Y Yo Ly ☑
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