ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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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
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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