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Interpretation of the aggregate supply and demand model In the graph of Figure I, the annual growth rate of the GDP of the United States

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Interpretation of the aggregate supply and demand model

In the graph of Figure I, the annual growth rate of the GDP of the United States economy is presented since the first quarter of 2004, while, in the graphs of Figure II, three different scenarios of the relationship are represented between demand and aggregate supply that reflect different situations of economic growth.

  1. Using the shifts in the aggregate demand curve in each of the three graphs in Figure II, explain the aggregate consumption and investment function.
  2. Explain in detail what is happening in Graph A of Figure II and, after examining the data in the graph of Figure I, identify in what period of time this situation is occurring.

image text in transcribed Figure I - Real data of the United States economy Annual Percentage Change in U.S. Real GDP [Quarter-Annual] Annual Percentage Change Q1- 2004 Q1- 2006 Q1- 2008 01. 2014 Q1- 2020 Q1- 2010 Q1- 2016 Q1. 2012 Q1 2018 Figure II - Representation of the aggregate demand and supply model Grafica A Grifica B Grafica C DAL ON INGP NG

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