Aggregate Demand and Aggregate Supply Videos Flashcards

Shifts in Aggregate Demand and Short Run Aggregate Supply

suppose that a fall in consumer spending causes a recession a illustrate the immediate change in the economy using both an aggregate supplyaggregate demand diagram and a phillips curve diagramon both

Channels

The economy is in short-run macroeconomic equilibrium at point ... | Filo

The economy is in short-run macroeconomic equilibrium at point E1 in the accompanying diagram. Based on the diagram, answer the following questions. a. Is the economy facing an inflationary or a recessionary gap? b. What policies can the government implement that might bring the economy back to long-run macroeconomic equilibrium? Illustrate with a diagram. c. If the government did not intervene to close this gap, would the economy return to long-run macroeconomic equilibrium? Explain and illustr