AD shocks change the equilibrium level of income(Y)and price(P). But the division of effects between P and Y depends on the shape of the SRAS curve. Using graphs show us what happens to P ,Y and the size of multiplier when a. SRAS is upward sloping b. SRAS is upward sloping and flatter c. SRAS is upward sloping and steeper
AD shocks change the equilibrium level of income(Y)and price(P). But the division of effects between P and Y depends on the shape of the SRAS curve. Using graphs show us what happens to P ,Y and the size of multiplier when a. SRAS is upward sloping b. SRAS is upward sloping and flatter c. SRAS is upward sloping and steeper
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section: Chapter Questions
Problem 7TY
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AD shocks change the equilibrium level of income(Y)and price(P). But the division of effects between P and Y depends on the shape of the SRAS curve. Using graphs show us what happens to P ,Y and the size of multiplier when
a. SRAS is upward sloping
b. SRAS is upward sloping and flatter
c. SRAS is upward sloping and steeper
d. SRAS is vertical
e. SRAS is horizontal
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