Macmillan Learning In the economy depicted in the graph, what happens if there is no intervention from policy makers? Use the graph, where LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand, to demonstrate the answers by shifting the appropriate curve or curves. Prices will increase. decrease Output will increase. decrease. Aggregate price level (P) Real output (Q) LRAS AD SRAS

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
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In the economy depicted in the graph, what happens if there
is no intervention from policy makers? Use the graph, where
LRAS represents long-run aggregate supply, SRAS
represents short-run aggregate supply, and AD represents
aggregate demand, to demonstrate the answers by shifting the
appropriate curve or curves.
Prices will
increase.
decrease
Output will
increase.
decrease.
Aggregate price level (P)
Real output (Q)
LRAS
AD
SRAS
Transcribed Image Text:Macmillan Learning In the economy depicted in the graph, what happens if there is no intervention from policy makers? Use the graph, where LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand, to demonstrate the answers by shifting the appropriate curve or curves. Prices will increase. decrease Output will increase. decrease. Aggregate price level (P) Real output (Q) LRAS AD SRAS
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