Question: MACRO - Long Run AS and the Phillips curve. Please answer all parts correctly and I will upvote your answer. Thank you!! Part 3: Put

MACRO - Long Run AS and the Phillips curve. Please answer all parts correctly and I will upvote your answer. Thank you!!

MACRO - Long Run AS and the Phillips curve. Please answer all

Part 3: Put It Together: The graph below shows the percent change in Real GDP for the US between 2005-2013. Use the graph to answer the following questions. FRED - Real Grew Domestic Product 5.0 2.! 0.0 Percent Change from Preceding Period 5.1 -715 -10.0 2006 2007 2008 2009 2010 2011 2012 B. Draw aggregate demand (AD), aggregate 9. Draw the short-run Phillips curve (SRPC) supply (AS), and long-run aggregate and long-run Phillips curve (LRPC) for the supply (LRAS) for the year 2009. Label year 2009. Label a point on your graph "A" price level PL1, the output Y1 and the full- that represents the state of the economy in employment YF. 2009. 10. The American Recovery and Reinvestment Act (ARRA) was passed in February 2009. Show the intended result of the ARRA on both the AD/AS model and the Phillips curve model. On the AD/AS model, label the new price level PL2 and the output Y2. On the Phillips curve, label the state of the economy point "B". Macro Problem Set 3-Part 3

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