Question: How could you use the dynamic aggregate demandaggregate supply (AD/AS) framework to explain the impact of an increase in net exports on inflation and output
How could you use the dynamic aggregate demandaggregate supply (AD/AS) framework to explain the impact of an increase in net exports on inflation and output in the economy? You can think of the impact of an increase in net exports as an (Click to select) aggregate demand aggregate supply shock. Such a shock would shift the (Click to select) short-run aggregate supply dynamic aggregate demand curve to the (Click to select) right left . In the absence of other changes, this would put (Click to select) downward upward pressure on output and (Click to select) downward upward pressure on inflation.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
