Question
On the graph to the right, show the effect on the equilibrium price and GDP using the AD/AS model when there is a drop in
On the graph to the right, show the effect on the equilibrium price and GDP using the AD/AS model when there is a drop in export demand by foreign purchasers.
1.) Using the line drawing
tool,
show the change to the AD or AS curve. Properly label your line.
2.) Using the point drawing
tool,
show the economy's new equilibrium. Label the point 'E'.
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Econometric Analysis
Authors: William H. Greene
8th Edition
978-0134461366, 0134461363
