level LRAS SRAS1 * AD₁ Y₁ = Real GDP potential (Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When firms decrease their investment spending, in the short run the the O LRAS; left O AD; left output O LRAS; right curve will shift to

level LRAS SRAS1 * AD₁ Y₁ = Real GDP potential (Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When firms decrease their investment spending, in the short run the the O LRAS; left O AD; left output O LRAS; right curve will shift to

Economics (MindTap Course List)

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ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

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Aggregate
price
level
LRAS
SRAS1
*
AD₁
Y₁ =
Real GDP
potential
output
(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When firms decrease their investment spending, in the short run the
the
OLRAS; left
O AD; left
O LRAS; right
O AD; right
curve will shift to

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