Price Level (average price) РЕ PF 5.8 6.0 C AD a 6.2 QF AS AD₂ Real Output (trillions of dollars per year) AD3 Assume aggregate demand is represented by AD1 and full-employment output is $6.0 trillion. The aggregate demand shortfall is equal to the distance between O A. Points b and e. OB. Points a and b. O C. Points a and d. O D. Points a and e.

Price Level (average price) РЕ PF 5.8 6.0 C AD a 6.2 QF AS AD₂ Real Output (trillions of dollars per year) AD3 Assume aggregate demand is represented by AD1 and full-employment output is $6.0 trillion. The aggregate demand shortfall is equal to the distance between O A. Points b and e. OB. Points a and b. O C. Points a and d. O D. Points a and e.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5PA

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