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).A700600400300200100LRAS100 2 400500600700S001000 1100 12Price Level

As per the inquiry, the given graph speaks to the since quite a while long run and short-run market in a similar diagram. Here short-run supply curve is given by the red line since quite a while long-run supply curve spoke to by the dark line and there is a development occurring in the demand curve AD1 to AD2. a) The new GDP in the short-run(SR) would be 500. b) The new price(P) level in the short-run(SR) would be 900. c) The new price(P) level over the long haul would be 1000 because of the new move. d) The new GDP level over the long haul would be 400.

Answered: What is the new GDP in the short-run as…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

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