Using the Keynesian model: 1. Draw and fully label an AD/AS diagram with AD at a level

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Using the Keynesian model:

1. Draw and fully label an AD/AS diagram with AD at a level that creates a deflationary/recessionary gap.

2. Identify the three different phases of the Keynesian AS curve on the diagram.

3. Add two AD curves to each phase of the AS curve (ie six AD curves in all).

4. Explain what will happen if there is a shift to the right in AD in each of the phases, using the AD curves that you have drawn.

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Economics Course Book 2020

ISBN: 9781382004961

2020 Edition

Authors: Jocelyn Blink, Ian Dorton

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Question Posted: Mar 13, 2024 03:00 AM

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Using the Keynesian model: 1. Draw and fully label an AD/AS diagram with AD at a level

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Economics Course Book 2020

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