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following figure. Which economist would believe that the macroeconomy will not quickly reach point B after a shift in aggregate demand from AD1 to AD2?
following figure. Which economist would believe that the macroeconomy will not quickly reach point B after a shift in aggregate demand from AD1 to AD2? This graph shows a leftward shift in aggregate demand from the initial aggregate demand curve, A D 1, to the new aggregate demand curve, A D 2, along a vertical long-run aggregate supply curve, L R A S. The L R A S curve rests at a real G D P value of Y asterisk where unemployment, u, equals the natural rate of unemployment, u asterisk. At point A, A D 1 intersects L R A S at price equals 100. At point B, A D 2 intersects L R A S at price equals 90. a classical economist F. A. Hayek J. M. Keynes
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