Question
AS and AD Using your AS/AD model, illustrate how the following affects the economy in the short run (SRAS is horizontal). a)Money supply increases b)The
- AS and AD
Using your AS/AD model, illustrate how the following affects the economy in the short run (SRAS is horizontal).
a)Money supply increases
b)The dollar depreciates significantly relative to the currencies of our trading partners.
c) The congress and the President passes tax cuts.
B. Redo part A, using your long run AS/AD model (LRAS is vertical).
a) Money supply increases
b) The dollar depreciates significantly relative to the currencies of our trading partners.
c)The congress and the President passes tax cu
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International Economic Relations Since 1945
Authors: Catherine R Schenk
2nd Edition
1351183567, 9781351183567
