The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model. Figure 8.3 U.S. Price Level 100 O AD, toAD, O AD, to AD₂ O AD₂ to AD₁ O AS, to A$) AS; to AS₂ m F AS3 AS₁ AD₂ 200 300 400 500 Real GDP (billions of dollars) AD₁ AS₂ AD₂ In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation)?

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The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate
supply model
Figure 8.3
U.S. Price Level
B
O AD, toAD;
O AD, to AD₂
O AD₂ to AD₁
O AS, to AS;
AS; to AS₂
100 200 300 400
AS3
AS₁
AD₂
500
Real GDP (billions of dollars)
AD
AS₂
AD3
In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation)?
Transcribed Image Text:The figure given below represents the equilibrium real GDP and price level in the aggregate demand and aggregate supply model Figure 8.3 U.S. Price Level B O AD, toAD; O AD, to AD₂ O AD₂ to AD₁ O AS, to AS; AS; to AS₂ 100 200 300 400 AS3 AS₁ AD₂ 500 Real GDP (billions of dollars) AD AS₂ AD3 In Figure 8.3, which of the following shifts would result in stagflation (economic stagnation and inflation)?
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