• Equilibrium price level, labeled PL1 Equilibrium real output, labeled Y1 • Assume there is an increase in imports to Econland. Using your graph, show the effect of the increase in imports to the short-run equilibrium of Econland. Label the new level of output Y2 and the new price level PL2.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand.

 Show each of the following in your graph. Assume the economy of Econland is in long-run equilibrium with full employment. 

 

Equilibrium price level, labeled PL1
Equilibrium real output, labeled Y1
• Assume there is an increase in imports to Econland. Using your graph, show the effect of the increase in imports to
the short-run equilibrium of Econland. Label the new level of output Y2 and the new price level PL2.
Transcribed Image Text:Equilibrium price level, labeled PL1 Equilibrium real output, labeled Y1 • Assume there is an increase in imports to Econland. Using your graph, show the effect of the increase in imports to the short-run equilibrium of Econland. Label the new level of output Y2 and the new price level PL2.
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