6. (LO 1, 2) Figure 12.12 shows the aggregate demand and supply for the economy of Etrusca....

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6. (LO 1, 2) Figure 12.12 shows the aggregate demand and supply for the economy of Etrusca.

a) Draw AD2 on Figure 12.12 assuming an increase in aggregate demand of 120.

b) What is the new level of equilibrium GDP?

c) What is the new equilibrium price level?

d) How much is the reduction in GDP due to the crowding out effect?

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Principles Of Macroeconomics

ISBN: 9780226818399

8th Edition

Authors: Sayre, J.E.; Morris, A.J.

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Question Posted: Nov 11, 2024 04:00 AM

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6. (LO 1, 2) Figure 12.12 shows the aggregate demand and supply for the economy of Etrusca....

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Principles Of Macroeconomics

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