There is a decrease in AD. ow on one AГА dra prices in both the short-run and the long-run. Mark the starting price and output P₁ and QN. Mark the price and output at the end of the short-run P₂ and Q2. Mark the price and output at the end of the long-run P3 and Q3. Be sure to label all the lines on your diagram, and if a line shifts, mark the order of the shifts with subscript numbers after the symbols (for example AD₁ shifts to become AD2). Next to the diagram, state the effect on prices, output, unemployment, and wages in both the short-run and long-run. Assume we start at QN.

There is a decrease in AD. ow on one AГА dra prices in both the short-run and the long-run. Mark the starting price and output P₁ and QN. Mark the price and output at the end of the short-run P₂ and Q2. Mark the price and output at the end of the long-run P3 and Q3. Be sure to label all the lines on your diagram, and if a line shifts, mark the order of the shifts with subscript numbers after the symbols (for example AD₁ shifts to become AD2). Next to the diagram, state the effect on prices, output, unemployment, and wages in both the short-run and long-run. Assume we start at QN.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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