Assume that an economy is at full employment.
a)Using an AD/AS diagram,graphically illustrate the economy at full employment.
b)Now suppose there is an increase in imports.Illustrate in the same diagram (as part a),the effect of an increase in imports.

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The Answer of Assume that an economy is at full employment.
a)Using an AD/AS diagram,graphically illustrate the economy at full employment.
b)Now suppose there is an increase in imports.Illustrate in the same diagram (as part a),the effect of an increase in imports.

Assume That an Economy Is at Full Employment