QUESTION 5 60 50 40 30 20 10 P level 0- 60 50 40 30 20 10 0 P level 0- 10 0 10 O Figure A Ob) Figures A & C O c) Figures C & D Od) Figures B & D LRAS 20 30 40 real GDP = Q Figure C LRAS 20 30 real GDP = Q ASO AS1 ADO 50 ASO AD1 CADO. 40 50 8578210 60 40 30 60 50 40 30 20 10 0 P level A 0 10 P level 0 10 Figure B LRAS 20 30 real GDPQ Figure D LRAS 40 20 real GDP Q AS1 ASO ADo H 50 ASO ADo AD1- 30 40 50 05. Assuming Aggregate Demand and Aggregate Supply are initially at ADo and ASo respectively, and AD1 and AS1 represent changes, which of the above graphs depict the economy's self-correcting mechanism at work? O a) Figures A & B

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QUESTION 5
60
50
ASO
P level
60
AS1
50
40
SKAK
30
20
10
*ADO
10 20 30 40 50
0
40
30
20
10
0
60
50
40
30
20
10
0
P level
0
P level
Figure A
0 10
LRAS
real GDP = Q
Figure C
LRAS
20
30
real GDP = Q
40
ASO
AD1
ADO
50
60
50
40
30
20
10
P level
0
Figure B
10
LRAS
real GDP = Q
10 20 30 40 50
Figure D
LRAS
AS1
20 30 40
real GDP = Q
A So
AD1
ADo
ASO
ADo
50
05. Assuming Aggregate Demand and Aggregate Supply are initially at ADo and ASo respectively, and AD1 and AS1 represent changes, which of the above graphs depict the economy's self-correcting mechanism at work?
O a) Figures A & B
Ob) Figures A & C
c) Figures C&D
O d) Figures B & D
Transcribed Image Text:QUESTION 5 60 50 ASO P level 60 AS1 50 40 SKAK 30 20 10 *ADO 10 20 30 40 50 0 40 30 20 10 0 60 50 40 30 20 10 0 P level 0 P level Figure A 0 10 LRAS real GDP = Q Figure C LRAS 20 30 real GDP = Q 40 ASO AD1 ADO 50 60 50 40 30 20 10 P level 0 Figure B 10 LRAS real GDP = Q 10 20 30 40 50 Figure D LRAS AS1 20 30 40 real GDP = Q A So AD1 ADo ASO ADo 50 05. Assuming Aggregate Demand and Aggregate Supply are initially at ADo and ASo respectively, and AD1 and AS1 represent changes, which of the above graphs depict the economy's self-correcting mechanism at work? O a) Figures A & B Ob) Figures A & C c) Figures C&D O d) Figures B & D
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