Short-run graph Long-run graph LRAS LRAS SRAS SRAS Short-run equilibrium Long-run equilibrium AD Real GDP Real GDP Aggregate price level In the short-run, the price level In the long-run, the price level and and increases increases GDP GDP decreases decreases increases increases stays the same stays the same decreases decreases stays the same stays the same

Short-run graph Long-run graph LRAS LRAS SRAS SRAS Short-run equilibrium Long-run equilibrium AD Real GDP Real GDP Aggregate price level In the short-run, the price level In the long-run, the price level and and increases increases GDP GDP decreases decreases increases increases stays the same stays the same decreases decreases stays the same stays the same

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section9.3: The Self Regulating Economy

Problem 3ST

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