In Figure 11.8 does the price level increase or decrease when (a) AD shifts leftward? (b) AS
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(a) AD shifts leftward?
(b) AS shifts leftward?
Figure 11.8
Transcribed Image Text:
(b) Supply shifts |AS, ASg (C) ASIAD shifts (a) Demand shifts AS AS Ez | ASo AD AD Q, QF REAL OUTPUT (quantity per year) QF OF REAL OUTPUT (quantity per year) REAL OUTPUT (quantity per year) PRICE LEVEL (avera ge price)
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a The price level decreases b The price level increases Explanati...View the full answer
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