Question: Fill up the blanks Applying the aggregate demand/aggregate supply model, describe the impact of the following event on GDP and prices in the short run:
Fill up the blanks
Applying the aggregate demand/aggregate supply model, describe the impact of the following event on GDP and prices in the short run:
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment, in teh short run,
Blank 1 (type in "AD" or "AS") will shift to the Blank 2 (type in "right" or "left").
Output will Blank 3 (type in "increase" or "decrease") and price will Blank 4 (type in "increase" or "decrease").
Blank 1:
Blank 2:
Blank 3:
Blank 4:
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