Question: Use the AS / AD model to determine how each of these events will affect the economy. Determine if the economy is initially to the
Use the ASAD model to determine how each of these events will affect the economy.
Determine if the economy is initially to the LEFT, ON or to the RIGHT of the LARS.Type exactly one of these options for credit for each of the letters.
A Initial situation: cyclical unemployment is ON
Binitial situation:recessionary gap LEFT
C Initial situation: inflationary gap RIGHT
D Initial situation: the unemployment rate is equal to the natural rate of unemployment ON
E Initial situation:a negative GDP gapLEFT
F Initial situation:unemployment rate of US economy LEFT
G Initial situation: cyclical unemployment is LEFT
H Initial situation: a recession LEFT
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