Answer the Following Questions Using the Aggregate Supply Diagram Below

Question 12

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Answer the following questions using the aggregate supply diagram below.
a. Identify where potential output would be.
b. Illustrate how aggregate demand might increase, raising output, but not price level.
c. Illustrate how an increase in aggregate demand might increase both output and price level.
d. Illustrate how a change in aggregate demand increases only the price level.
Answer the following questions using the aggregate supply diagram below. a. Identify where potential output would be. b. Illustrate how aggregate demand might increase, raising output, but not price level. c. Illustrate how an increase in aggregate demand might increase both output and price level. d. Illustrate how a change in aggregate demand increases only the price level.

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