un Use the graph to the right to answer the following questions (assume that each event takes places independently) 1. What is the short-run equilibrium price level and output? 2. Identify the short-run equilibrium price level and output if consumption increased? 3. Identify the short-run equilibrium price level and output after a negative supply shock? 4. What happens to output and unemployment if investment falls 5. Use the graph to explain the difference between demand-pull and costs-push inflation.

un Use the graph to the right to answer the following questions (assume that each event takes places independently) 1. What is the short-run equilibrium price level and output? 2. Identify the short-run equilibrium price level and output if consumption increased? 3. Identify the short-run equilibrium price level and output after a negative supply shock? 4. What happens to output and unemployment if investment falls 5. Use the graph to explain the difference between demand-pull and costs-push inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Ap Econ

Topic 3.6- Changes in the AD-AS Model in the Short Run
Price
Level
PL₁
PL₂
PL,
PL
LRAS
SRAS
AD
Y, GDP,
Use the graph to the right to answer the following questions
(assume that each event takes places independently)
1. What is the short-run equilibrium price level and output?
2. Identify the short-run equilibrium price level and output if
consumption increased?
3. Identify the short-run equilibrium price level and output
after a negative supply shock?
4. What happens to output and unemployment if investment falls?
5. Use the graph to explain the difference between
demand-pull and costs-push inflation.

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