What is the new GDP in the short-run as a result of this shift? What is the new price level in the short-run as a result of this shift? What is the price level in the new long-run equilibrium as a result of this shift? What is GDP in the new long-run equilibrium as a result of the shift?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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What is the new GDP in the short-run as a result of this shift?

What is the new price level in the short-run as a result of this shift?

What is the price level in the new long-run equilibrium as a result of this shift?

What is GDP in the new long-run equilibrium as a result of the shift?

The graph below shows the AD-AS diagram for Brazil.
Suppose that the economy is initially in long-run equilibrium with the price level of 800.
Now suppose that the Aggregate Demand (AD) curve shifts right from AD1 (blue) to AD2 (green).
A
700
600
400
300
200
100
LRAS
100 2 400
500
600
700
S00
1000 1100 12
Price Level
Transcribed Image Text:The graph below shows the AD-AS diagram for Brazil. Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts right from AD1 (blue) to AD2 (green). A 700 600 400 300 200 100 LRAS 100 2 400 500 600 700 S00 1000 1100 12 Price Level
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