Question
Short-run equilibrium and long-run aggregate supply The following graph shows several aggregate demand and aggregate supply curves for an economy whose potential output is $4
Short-run equilibrium and long-run aggregate supply
The following graph shows several aggregate demand and aggregate supply curves for an economy whose potential output is $4 trillion. The curves are labelled a, b, c, and d. Three points on the graph are also indicated by grey stars and labelled X, Y, and Z.
0123456781601501401301201101009080PRICE LEVELREAL GDP (Trillions of dollars)bcdaXYZ
Identify which curve on the previous graph corresponds to each description in the following table. If the curve described does not appear on the graph, choose Not Shown.
| Description | a | b | c | d | Not Shown | |
|---|---|---|---|---|---|---|
| Long-run aggregate supply (LRAS) | ||||||
| Short-run aggregate supply (SRAS) when there is a recessionary gap | ||||||
| Aggregate demand (AD) | ||||||
| Short-run aggregate supply (SRAS) when the economy is at long-run equilibrium | ||||||
| Short-run aggregate supply (SRAS) when there is an inflationary gap |
Grade It Now
Save & Continue
Continue without saving
a
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Global Development And The Environment Perspectives On Sustainability
Authors: Joel Darmstadter
1st Edition
1317335686, 9781317335689
