Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 20.A, Problem 19SQ
To determine
The path to the new long run equilibrium in the economy.
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Suppose the economy is in a long-run equilibrium
a)Draw a diagram to illustrate the state of the economy . Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply.
b) The federal government increases spending on national defense.
c) A technological improvement raises productivity
In 2006, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule:
Price Level
Aggragate Demand
Shortrun Aggragate Supply
90
$1325
$1085
100
$1300
$1140
110
$1275
$1195
120
$1250
$1250
130
$1225
$1305
140
$1200
$1360
150
$1175
$1415
What was Aptonville’s short-run equilibrium output in 2006?
The U.S. economy's initial aggregate demand curve is AD₁. Drag each event to the curve that
would result from it.
The price level increases." Foreign incomes increase."
New communication technologies lower the production cost of many services.
The value of the U.S. dollar increases relative to other currencies.
Drag each item above to its appropriate location in the image. Note that every item may not have a match, while some items may have more
than one match.
Price level
(P)
AD₁
AD₁
AD₂
Real GDP
Chapter 20 Solutions
Economics For Today
Ch. 20.7 - Prob. 1YTECh. 20.A - Prob. 1SQPCh. 20.A - Prob. 2SQPCh. 20.A - Prob. 3SQPCh. 20.A - Prob. 4SQPCh. 20.A - Prob. 5SQPCh. 20.A - Prob. 6SQPCh. 20.A - Prob. 1SQCh. 20.A - Prob. 2SQCh. 20.A - Prob. 3SQ
Ch. 20.A - Prob. 4SQCh. 20.A - Prob. 5SQCh. 20.A - Prob. 6SQCh. 20.A - Prob. 7SQCh. 20.A - Prob. 8SQCh. 20.A - Prob. 9SQCh. 20.A - Prob. 10SQCh. 20.A - Prob. 11SQCh. 20.A - Prob. 12SQCh. 20.A - Prob. 13SQCh. 20.A - Prob. 14SQCh. 20.A - Prob. 15SQCh. 20.A - Prob. 16SQCh. 20.A - Prob. 17SQCh. 20.A - Prob. 18SQCh. 20.A - Prob. 19SQCh. 20.A - Prob. 20SQCh. 20 - Prob. 1SQPCh. 20 - Prob. 2SQPCh. 20 - Prob. 3SQPCh. 20 - Prob. 4SQPCh. 20 - Prob. 5SQPCh. 20 - Prob. 6SQPCh. 20 - Prob. 7SQPCh. 20 - Prob. 8SQPCh. 20 - Prob. 9SQPCh. 20 - Prob. 10SQPCh. 20 - Prob. 11SQPCh. 20 - Prob. 1SQCh. 20 - Prob. 2SQCh. 20 - Prob. 3SQCh. 20 - Prob. 4SQCh. 20 - Prob. 5SQCh. 20 - Prob. 6SQCh. 20 - Prob. 7SQCh. 20 - Prob. 8SQCh. 20 - Prob. 9SQCh. 20 - Prob. 10SQCh. 20 - Prob. 11SQCh. 20 - Prob. 12SQCh. 20 - Prob. 13SQCh. 20 - Prob. 14SQCh. 20 - Prob. 15SQCh. 20 - Prob. 16SQCh. 20 - Prob. 17SQCh. 20 - Prob. 18SQCh. 20 - Prob. 19SQCh. 20 - Prob. 20SQ
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