could you elaborate? or might as well explain the graph? Figure 12.4 Equilibrium in the AD-AS ModelLRASSRASSRASADADYsYOutputOutput(a)(b)INTERSECTION OF THE AD AND SRAS CURVES DETERMINES THE OUTPUT AND PRICELEVEL IN THE SHORT RUN; OUTPUT MAY DIFFER FROM FULL-EMPLOYMENT OUTPUT.INTERSECTION OF THE AD AND LRAS CURVES DETERMINES THE OUTPUT AND PRICELEVEL IN THE LONG RUN; OUTPUT MUST EQUAL FULL-EMPLOYMENT OUTPUT.Price Level

The economics as a study is based upon the idea that the resources which are present with the…

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Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 8SCQ: Suppose Mexico, one of our largest trading partners and purchaser of a large quantity of our...

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could you elaborate? or might as well explain the graph?

Figure 12.4 Equilibrium in the AD-AS Model
LRAS
SRAS
SRAS
AD
AD
Ys
Y
Output
Output
(a)
(b)
INTERSECTION OF THE AD AND SRAS CURVES DETERMINES THE OUTPUT AND PRICE
LEVEL IN THE SHORT RUN; OUTPUT MAY DIFFER FROM FULL-EMPLOYMENT OUTPUT.
INTERSECTION OF THE AD AND LRAS CURVES DETERMINES THE OUTPUT AND PRICE
LEVEL IN THE LONG RUN; OUTPUT MUST EQUAL FULL-EMPLOYMENT OUTPUT.
Price Level

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