< Question 20 of 23 > The graphs illustrate an initial equilibrium for some economy. Suppose that the economy experiences a rise in aggregate demand. Use the graphs to illustrate the new positions of AD, SRAS, and LRAS as well as the new short-run and long-run equilibria resulting from this change. Short-Run Graph Long-Run Graph LRAS LRAS SRAS SRAS Equilibrium point Equilibrium point AD AD Real GDP Real GDP Aggregate price level Aggregate price level
< Question 20 of 23 > The graphs illustrate an initial equilibrium for some economy. Suppose that the economy experiences a rise in aggregate demand. Use the graphs to illustrate the new positions of AD, SRAS, and LRAS as well as the new short-run and long-run equilibria resulting from this change. Short-Run Graph Long-Run Graph LRAS LRAS SRAS SRAS Equilibrium point Equilibrium point AD AD Real GDP Real GDP Aggregate price level Aggregate price level
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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