Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 16P
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![PRICE LEVEL
O Point O.
O Point Q.
O Point P.
P
O Point S.
LRAS
Q
R
S
O
AD₁
QUANTITY OF OUTPUT
Refer to Figure 33-5. Suppose the economy starts at Point R. If aggregate demand increases from AD2 to AD3, then in the short run the economy moves to
AD₁
AD₂
SRAS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdce9ba03-80ad-4ef0-9d01-d879c68da607%2F088ea742-ce94-4921-bc9d-a55a455bd252%2Fsvwyh6q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PRICE LEVEL
O Point O.
O Point Q.
O Point P.
P
O Point S.
LRAS
Q
R
S
O
AD₁
QUANTITY OF OUTPUT
Refer to Figure 33-5. Suppose the economy starts at Point R. If aggregate demand increases from AD2 to AD3, then in the short run the economy moves to
AD₁
AD₂
SRAS
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