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V will the shift in AD affect the original output, price level, and employment? 61. Table 11.4 describes Santher's economy. Price Level AD AS 50
V will the shift in AD affect the original output, price level, and employment? 61. Table 11.4 describes Santher's economy. Price Level AD AS 50 1,000 250 60 950 580 70 900 750 80 850 850 90 800 900 Table 11.4 Price Level: AD/AS a. Plot the AD/AS curves and identify the equilibrium. b. Would you expect unemployment in this economy to be relatively high or low? c. Would you expect prices to be a relatively large or small concern for this economy? d. Imagine that input prices fall and so AS shifts to the right by 150 units. Identify the new equilibrium. e. How will the shift in AS affect the original output, price level, and employment
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