Now suppose that a boom in stock market causes aggregate demand to rise. Use your diagram to show what happens to output and the price level in the short run. What happens to the unemployment rate?
Now suppose that a boom in stock market causes aggregate demand to rise. Use your diagram to show what happens to output and the price level in the short run. What happens to the unemployment rate?
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Aggregate Demand And Aggregate Supply
Section15.2: Explaining Short-run Economic Fluctuations
Problem 2QQ
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- Now suppose that a boom in stock market causes aggregate demand to rise. Use your diagram to show what happens to output and the price level in the short run. What happens to the
unemployment rate? - Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run
aggregate supply , and long-run aggregate supply.
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