On the following graph, draw the AD and AS curves with these data: What is the equilibrium
Question:
What is the equilibrium
(i) Real output level?
(ii) Price level?
Suppose net exports decline by $100 at all price levels, but all other components of aggregate demand remain constant.
(b) Draw the new AD curve.
(c) What is the new equilibrium
(i) Output level?
(ii) Price level?
(d) What macro problem has arisen in this economy: (A) unemployment or (B) inflation?
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Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
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