Over the long run the short run aggregate supply curve shifts upward to the

Over the long run the short run aggregate supply

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both price level and real GDP increase. Over the long run theshort-run aggregate supply curve shifts upward to the left and a newlong-run equilibrium is reached at the initial equilibrium GDP but at a higher price level.An increase in the money supply will Your answer is correct. An increase in the money supply will
Suppose that the economy is depicted as shown to the right.a. The state of the economy depicted at the right can be best described as b.Using the line drawing tool, draw a scenario depicting an increase in the money supply which brings the economy to full employment. Properly label your line.AD WILL SHIFT TO THE RIGHT SO NEW EQUILIBIUM IS ON THE INTERSECTION OF SRAS, LRAS AND NEW ADSuppose that the economy is depicted at the right.
a.The state of the economy depicted at the right can be best described as A.being inlong-run equilibrium.B.a depression.C.having a recessionary gap.D.having an inflationary gap. (INTERSECTION OF SRAS AND AD TO THE RIGHT FROM LRAS) b. Using the line drawing tool, draw a scenario depicting an decrease in the money supply which brings the economy to full employment. Properly label your line.AD WILL SHIFT DOWN/LEFT SO THE NEW INTERSECTION IS ON THE INTERSECTION OF SRAS, LRAS AND NEW ADWhich of the following is a truestatement?
Your answer is correct.

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