NFLATION RATE Panel 3 NFLATION RATE Panel 2 LRAS X AD ww Panel 1 Panel 3 LRAS LRAS SRAS (E10) X= AD Panel 4 SRAS (E10) AD (M-V-13%) REAL GOP GROWTH RATE GROWTH RATE V.130 DYLATION RATE INPLATION RATE ж Panel 4 LRAS LRAS LRAS SRAS (En-10x) SRAS (E10) GROWTH RATE ich graph/Panel best illustrates what happens if consumers and investors become mor mistic? AD AD MV. 13 REAL GOP GROWTH RATE AD OM-V-139 AD

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Suppose the economy operates and is in equilibrium as below.
INFLATION
RATE
(по
INFLATION
RATE
an
LRAS
X
ELATION
ww
The following graphs represent the shocks in the economy:
Panel 1
Panel 3.
LRAS
ж
1ELRAS
AD
SRAS (En-10)
SRAS (En-10%)
RIAL GO
GROWTH RATE
AD M + V = 13x)
REAL GDP
GROWTH RATE
SPAS E-100
NAP M - V = 13:1).
KA
INPLATION
RATE
Panel2
LRAS
Ж
Panel 4
SRAS (En-10%)
AV-13
REAL GOT
GROWTH RATE
Transcribed Image Text:Suppose the economy operates and is in equilibrium as below. INFLATION RATE (по INFLATION RATE an LRAS X ELATION ww The following graphs represent the shocks in the economy: Panel 1 Panel 3. LRAS ж 1ELRAS AD SRAS (En-10) SRAS (En-10%) RIAL GO GROWTH RATE AD M + V = 13x) REAL GDP GROWTH RATE SPAS E-100 NAP M - V = 13:1). KA INPLATION RATE Panel2 LRAS Ж Panel 4 SRAS (En-10%) AV-13 REAL GOT GROWTH RATE
INFLATION
RATE
S
Panel 1
Panel 3
INFLATION
RATE
Panel 2
Panel 1
LRAS
Panel 3
LRAS
Panel 4
AD
SRAS (E10)
NEW
LRAS
X₂
AD
AD (M.V.13%)
REAL GOP
GROWTH RATE
SRAS (-10)
ADMV13)
REAL GOP
GROWTH RATE
ILATION
RATE
ENFLATION
RATE
Panel2
Panel 4
LRAS RAS
LRAS
SRAS (En-10x)
SRAS (E10)
A.V.
REAL GOP
GROWTH RATE
Which graph/Panel best illustrates what happens if consumers and investors become more
optimistic?
REAL GOP
GROWTH RATE
AD
AD (M-V13)
Transcribed Image Text:INFLATION RATE S Panel 1 Panel 3 INFLATION RATE Panel 2 Panel 1 LRAS Panel 3 LRAS Panel 4 AD SRAS (E10) NEW LRAS X₂ AD AD (M.V.13%) REAL GOP GROWTH RATE SRAS (-10) ADMV13) REAL GOP GROWTH RATE ILATION RATE ENFLATION RATE Panel2 Panel 4 LRAS RAS LRAS SRAS (En-10x) SRAS (E10) A.V. REAL GOP GROWTH RATE Which graph/Panel best illustrates what happens if consumers and investors become more optimistic? REAL GOP GROWTH RATE AD AD (M-V13)
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