Question
Create an AD/AS diagram model using the following information: - This year in June, the Real GDP increased to $532,228 million, indicating that the economy
Create an AD/AS diagram model using the following information:
- This year in June, the Real GDP increased to $532,228 million, indicating that the economy has steadily recovered from its downturn.
- Inflation increased from 3.8% in the second quarter to 3.8% in the third quarter.
- Furthermore, the Output Gap also decreased to 4.7%.
- This outcome indicates that the stimulus measures introduced by the government were successful in stabilizing the economy.
- By September 2022, the economy had fully recovered, with Real GDP reaching $552,547 million, unemployment rate stabilizing at 0.8%, and inflation remaining steady at 7.3%.
- The Output Gap remained at 3.5%.
- The rightward shift of the aggregate demand curve due to government stimulus measures helped the economy to achieve a full recovery.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To create an ADAS diagram model based on the provided information we will plot the following points ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started