1. AD/AS can show the economy at three different points: Negative output gap (recessionary gap) Full employment output (healthy economy, NRU 4-6%) Positive output gap (inflationary gap) ● ● (a) How can we link AD/AS to the loanable funds market? (b) How can we link AD/AS to the money market? (c) How can we link AD/AS to the FOREX market?

1. AD/AS can show the economy at three different points: Negative output gap (recessionary gap) Full employment output (healthy economy, NRU 4-6%) Positive output gap (inflationary gap) ● ● (a) How can we link AD/AS to the loanable funds market? (b) How can we link AD/AS to the money market? (c) How can we link AD/AS to the FOREX market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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