Question: A student was asked to draw an aggregate demand and aggregate supply graph to illustrate the effect of an increase in aggregate supply. The student

A student was asked to draw an aggregate demand and aggregate

A student was asked to draw an aggregate demand and aggregate supply graph to illustrate the effect of an increase in aggregate supply. The student drew the following graph:

Price SRAS level SRAS2 P1 P3 P2 AD2 AD- Real GDP O (billions of dollars)

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