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

Transcribed Image Text:Price Level
P1
0
AD₁
\AD₂
Q₁ Q2 Q3
AS
Real Domestic Output
Refer to the figure above. A shift from AD 1 shifts to AD 2 would be consistent with what
economic event in U.S. history?
O Demand-pull inflation in the late 1960s
O Cost-push inflation in the mid-1970s
O Full-employment in the late 1990s
◇ Recession in 2007-09
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