Business, 09.07.2021 20:30, nathansnyder200
Construct an AD/AS model. Label the vertical axis P from 0 to 500 using increments of 100. This corresponds with the implicit or GDP price deflator, 100 is the base year. Label the horizontal axis RGDP from 0 to 6,000 using increments of 1,000. This output line is measured in billions. Now construct an LRAS at 3,000 billion. This is the natural rate of in-come and output or full employment output. This economy is currently experiencing an unexpected decrease in in-ventories. Use the following data to construct AD and SRAS: AD SRAS:
AD SRAS
P= 10, RGDP = 6,000 P= 100, RGDP= 2,000
P=400, RGDP = 2,000 P= 300, RGDP = 4,000
Describe the position of equilibrium in this market. Describe, in words and show in the graph, the most likely outcome, overtime, if this market had no external intervention?
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Construct an AD/AS model. Label the vertical axis P from 0 to 500 using increments of 100. This corr...
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