{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Economics_2020_wrksht_2

Economics_2020_wrksht_2 - Worksheet#2 Macro Economics 2020...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Worksheet #2 Macro Economics 2020 AGGREGATE SUPPLY AND AGGREGATE DEMAND 1. In year zero, AS and AD curves cross at the full employment level of output. In year one the Peak Economy had 3% AS growth and 6% AD growth. In year two the Downturn economy has 3% AS growth and 0% AD growth. Using the AS and AD curves, graph the change from year 0 to year 1 to year 2. Make sure to indicate the change in full employment output, actual output and inflation. In the downturn economy is there excess capacity? 2. If we are on the portion of the aggregate supply curve in which there is excess capacity then a. can increase output and will have inflation b. can decrease output and will have inflation c. can increase output and will not have inflation d. we are at the full employment output
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}