Using the AD-AS model, which of the following statement better describe what has happened with the pandemic? a. The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to much lower production in the overall economy. b. The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to a lower natural rate of output in the overall economy. c. The government discouraged people from participating in economic activities, which shifted the AD curve right, causing a higher price level for the firm to produce more goods and services. Hence, the short-run aggregate supply shifts to the left, leading to much lower production in the overall economy. d. The government discouraged people from engaging in economic activities, which shifted the AD curve left, causing a lower price level for the firm to produce more goods and services. Hence, the short-run aggregate supply shifts to the right, leading to higher production in the overall economy.
Using the AD-AS model, which of the following statement better describe what has happened with the pandemic?
The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to much lower production in the overall economy.
The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to a lower natural rate of output in the overall economy.
The government discouraged people from participating in economic activities, which shifted the AD curve right, causing a higher
The government discouraged people from engaging in economic activities, which shifted the AD curve left, causing a lower price level for the firm to produce more goods and services. Hence, the short-run aggregate supply shifts to the right, leading to higher production in the overall economy.
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