Part 1: Long-Run Self Adjustment- Draw a correctly labeled graph of aggregate demand, aggregate supply, and long-run aggregate supply. Start each graph at full employment. Show what happens in both the short-run and the long-run if the economy is given time to self-adjust. 1. Consumer spending increases as consumers confidence increases 2. Congress passes a bill dramatically reducing government spending
Part 1: Long-Run Self Adjustment- Draw a correctly labeled graph of aggregate demand, aggregate supply, and long-run aggregate supply. Start each graph at full employment. Show what happens in both the short-run and the long-run if the economy is given time to self-adjust. 1. Consumer spending increases as consumers confidence increases 2. Congress passes a bill dramatically reducing government spending
Chapter17: The Trade-off Between Inflation And Unemploy
Section: Chapter Questions
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