Santher is an economy described by Table 24.4. Price Level AD AS 50 1,000 250 60 950 580
Chapter 24, Problem 61(choose chapter or problem)
Santher is an economy described by Table 24.4. Price Level AD AS 50 1,000 250 60 950 580 70 900 750 80 850 850 Table 24.4 Price Level: AD/AS Price Level AD AS 90 800 900 Table 24.4 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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