Online Learning
CLICK HERE TO ORDER YOUR ASSIGNMENT

Aggregate S &amp

D

22.In the AD-AS model, assume that an economy’s aggregate demand, denoted by

Question

Aggregate S D

22.In the AD-AS model, assume that an economy’s aggregate demand, denoted by

QD=400-P, and SR aggregate supply, denoted by QS=P, currently intersect at price level = $200 and the full employment output level = 200. Which of the following event is most likely to explain a new LONG-RUN equilibrium occurring at an output level of 300 and a price level of $100?

A) Price of crude oil falls.

B) The currency of Country X depreciates.
Economics

Aggregate S &amp