Show and explain the effects of an increase in aggregate demand in the long-run and short-run by using AD–AS curves.

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 1CQ
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3)Show and explain the effects of an increase in aggregate demand in the long-run and short-run by using AD–AS
curves.
2)Show and explain by using a graph, what will happen to the price level and real GDP if the quantity of money
increases and the increase is not anticipated; that is, the price level is not expected to change.
1)By using aggregate demand (AD) and aggregate supply (AS) curves, show and explain the effects of an
anticipated increase in money supply on macroeconomic equilibrium according to Rational Expectations
Hypothesis.

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