1) Using your AS-AD diagram (with SRAS, LRAS and AD), graphically illustrate an economy that is presently at a long-run equilibrium. Label that equilibrium point A.

2). In the same diagram, graphically illustrate an equilibrium that is consistent with a stagflation (relative to point A). Label that new equilibrium point B.

You need to draw the diagram, label all axes and curves and upload a file with a picture of your diagram. Incomplete graphs, illegible graphs and unlabeled graphs with get very little points, if any. Moreover, graphs with additional details than needed will also receive lower points.

Answer rating: 100% (QA)

Answer Here is the ASAD diagram illustrating the requested scenarios Diagram showing Xaxis Real Out... View the full answer