The diagram in the figure below shows aggregate demand for New Caprica last year (AD) and...
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The diagram in the figure below shows aggregate demand for New Caprica last year (AD₁) and this year (AD2). Price ($) P₁ P₂ 0 LRAS AD 2 SRAS AD 1 20 40 60 80 100 120 140 160 If you were to advise the president of New Caprica on economic policy, how would you answer the following? Instructions: Enter your answers as whole numbers. a. Current output is $ million. million, and potential output is $ million. There is (Click to select) of output of $ b. New Caprica is in a recession c. The president should enact expansionary fiscal policy. d. The aggregate demand curve would shift to the (Click to select) if the president used contractionary fiscal policy. The diagram in the figure below shows aggregate demand for New Caprica last year (AD₁) and this year (AD2). Price ($) P₁ P₂ 0 LRAS AD 2 SRAS AD 1 20 40 60 80 100 120 140 160 If you were to advise the president of New Caprica on economic policy, how would you answer the following? Instructions: Enter your answers as whole numbers. a. Current output is $ million. million, and potential output is $ million. There is (Click to select) of output of $ b. New Caprica is in a recession c. The president should enact expansionary fiscal policy. d. The aggregate demand curve would shift to the (Click to select) if the president used contractionary fiscal policy.
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The image provided indicates an economic scenario using an Aggregate Demand AD and Aggregate Supply AS model The first part AD1 represents the aggrega... View the full answer
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