Using an AD/AS diagram (starting from long-run/full employment equilibrium), graphically show and verbally describe how each of the following events would affect the U.S. economy's equilibrium real GDP and price level. a. Discovery and implementation of new technology b. Mexico's economic growth increases faster than ours c. There is a general increase in the price of raw materials d. The number of workers in the labor force decreases due to pandemic retirements/death
Using an AD/AS diagram (starting from long-run/full employment equilibrium), graphically show and verbally describe how each of the following events would affect the U.S. economy's equilibrium real GDP and price level. a. Discovery and implementation of new technology b. Mexico's economic growth increases faster than ours c. There is a general increase in the price of raw materials d. The number of workers in the labor force decreases due to pandemic retirements/death
Chapter9: Classical Macro Economics And The Self Regulating Economy
Section: Chapter Questions
Problem 18QP
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![Using an AD/AS diagram (starting from long-run/full employment equilibrium), graphically show and
verbally describe how each of the following events would affect the U.S. economy's equilibrium real GDP and price level.
a. Discovery and implementation of new technology
b. Mexico's economic growth increases faster than ours
c. There is a general increase in the price of raw
materials
e. The cost of labor (wages) rises
g. The price of oil is expected to fall
d. The number of workers in the labor force decreases
due to pandemic retirements/death
f. A new Congress decreases government spending
h. Consumer confidence falls](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4d021649-84ae-494f-9309-8423bd446b81%2F8d76675c-e628-4cd4-a23b-3669cb7bf3e5%2F41ibh3g_processed.png&w=3840&q=75)
Transcribed Image Text:Using an AD/AS diagram (starting from long-run/full employment equilibrium), graphically show and
verbally describe how each of the following events would affect the U.S. economy's equilibrium real GDP and price level.
a. Discovery and implementation of new technology
b. Mexico's economic growth increases faster than ours
c. There is a general increase in the price of raw
materials
e. The cost of labor (wages) rises
g. The price of oil is expected to fall
d. The number of workers in the labor force decreases
due to pandemic retirements/death
f. A new Congress decreases government spending
h. Consumer confidence falls
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