Then the world economy expands and the demand for Canadian-produced goods increases. Draw a curve that shows: 1) the effect of increased demand for Canadian-produced goods. Label it 1. 2) the effect of a rising money wage rate that returns the economy to full employment. Label it 2. Draw a point at the new long-run equilibrium. An economy is in a long-run equilibrium. An increase in aggregate demand creates the money wage rate decreases gap. A rise in and returns the economy to a full-employment equilibrium. O A. a positive; short-run aggregate supply O B. a recessionary; short-run aggregate supply OC. an inflationary; short-run aggregate supply and long-run aggregate supply OD. an inflationary; the quantity of real GDP demanded 140 130- 120- 110 100- 90 80+ 1.6 LAS 1.8 1.9 1.7 Real GDP (trillions of 2007 dollars) SAS AD 2.0

Then the world economy expands and the demand for Canadian-produced goods increases. Draw a curve that shows: 1) the effect of increased demand for Canadian-produced goods. Label it 1. 2) the effect of a rising money wage rate that returns the economy to full employment. Label it 2. Draw a point at the new long-run equilibrium. An economy is in a long-run equilibrium. An increase in aggregate demand creates the money wage rate decreases gap. A rise in and returns the economy to a full-employment equilibrium. O A. a positive; short-run aggregate supply O B. a recessionary; short-run aggregate supply OC. an inflationary; short-run aggregate supply and long-run aggregate supply OD. an inflationary; the quantity of real GDP demanded 140 130- 120- 110 100- 90 80+ 1.6 LAS 1.8 1.9 1.7 Real GDP (trillions of 2007 dollars) SAS AD 2.0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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