Essentials of Economics 10th Edition by Bradley Schiller, Karen Gebhardt

تمرين 4

Suppose the economy is initially in equilibrium at an output level of 100 and a price level of 100. The Fed then manages to shift aggregate demand rightward by 20.
( a ) Illustrate the initial equilibrium ( E 1) and the shift of AD.
( b ) Show what happens to output and prices if the aggregate supply curve is (i) horizontal, (ii) vertical, and (iii) upward-sloping.