Some events change aggregate demand from AD 0 to AD 1 and aggregate supply from AS 0
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Some events change aggregate demand from AD0 to AD1 and aggregate supply from AS0 to AS1. What is the new macroeconomic equilibrium?
Use Figure 29.2 to work Problems. Initially, the economy is at point B.
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FIGURE 29.2 Chapter Checkpoint Study Plan Problems 7 to 9 Price level (GDP price index) 115 110 105 100 95 0 0.8 B D AS₁ ADO ASO ADI 1.0 1.2 Real GDP (trillions of 2012 dollars)
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