Question
1) how does an aggregate demand and short-run aggregate supply curves in a diagram look like?. Label the axis and each of the curves. Mark
1) how does an aggregate demand and short-run aggregate supply curves in a diagram look like?. Label the axis and each of the curves. Mark clearly the equilibrium.
2) how will events like a change in stock prices or expectations about the future, costs of production, government policies etc show a change in the diagram. How this event will affect one or both curves by shifting the curve(s). Mark clearly the new equilibrium.
3) explain in one to two sentences why you shifted the curve(s) the way you did in the previous question and maybe what type of spending changed.
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